PTI
 
New Delhi, May 1: Terming Inflation as a key challenge, the Confederation of Indian Industry on Thursday said the government is worried, but not panicked, that rising prices may go to levels where controlling it could become difficult.

"The government is not in a state of panic, but worried that inflation could get to a level where controlling in becomes difficult" K V Kamath, the new CII President told PTI.

He, however, sought to underplay the political controversy over the inflation saying that "growth momentum is too strong for political vicissitude to hold sway." Kamath, who also heads the country's biggest private sector lender ICICI Bank, noted that the current "inflationary momentum has caught us bit by surprise. Initially we thought it was only external factors and food driven but suddenly it has gathered momentum in the last 3-6 months." When asked whether he would have liked some inflation- controlling steps to be taken earlier, Kamath said, "very little" at this point of time, because a large part of the inflation is imported, and could not be helped.

He, however, exuded confidence that political will of the nation would help overcome the crisis saying, "it is very difficult challenge that they have taken -- control inflation and grow. And the great thing I have seen is alignment of interest, not only in parliament but also across political parties." "Growth rhetoric is too strong for political vicissitudes to hold sway," he said adding that industry was willing to contribute its part in meeting the challenge.

Asked if the government was bit late in bracing up to the challenge, he said the steps on supply side could have been taken possibly earlier.