Subir Gokarn, a deputy governor of the Reserve Bank of India, on Tuesday said the central bank would need to address inflationary pressures to preserve sustainable growth in the future.

At a meeting in Mumbai, India, Gokarn said: "Acceptance of a higher rate of inflation as the new normal – an inevitable consequence of rapid growth – will raise risks of accelerating inflation. In turn, this is likely to weaken incentives for investment, which will threaten the sustainability of growth. This is a