•The finance ministry has often said that monetary policy is the first line of defence while controlling inflation. Will it not affect interest rates?

Interest rates, as an instrument to moderate inflation, are available to the central banks the world over. How the central bank uses policy rates is for it to decide.

•But you also want banks to ensure adequate credit to the industry?

Even the RBI makes it clear that it is not the RBI’s intention to deny adequate credit to the productive sector. Everytime we have met banks what we have said is do not deny adequate credit to the productive sectors. That doesn’t mean... the media interprets it differently. Go back to the words we use. Who can take exception to such a statement of sentiment?

•If interest rates go up, will it not affect economic growth? Do you see a trade-off between inflation and growth?

There is, obviously. We all know that. The industry chambers know that. There is high inflation and if policy rates are to be adjusted for that, it will impact growth. What we are trying to do is balance it to the extent possible. But I have already said, inflation control is top priority. So, for that purpose, if we have to sacrifice a bit of growth, so be it.

•Interestingly, in your Lok Sabha intervention on the Motion of Confidence, you singled out China? Why China?

In my view, the only country comparable to China is India. I talked about China since its civil nuclear power situation is more or less the same as India’s. From figures that were given to me, civil nuclear power constitutes 2 per cent of the total installed power capacity in China. In India, it constitutes 3 per cent of the total capacity. In a sense, India and China are in the same boat. Now, how is China looking forward in the area of civil nuclear cooperation? There, I have gathered material about the number of reactors that are in place, the number that are being built and the number that are being contemplated. And I intended to say that is the right path to take. Build more reactors and expand civil nuclear capacity. That is why I referred to China. It has got nothing to do with the Left. In fact, when I refer to China, why should the Left take umbrage, I can’t understand? It is one among 150 countries in the world.

... contd.