However, he conceded that short-term growth could be impacted by high inflation fuelled by an uptick in oil prices despite strong performances in the industrial and services sectors.

Singh, an economist, has targetted 7.0 to 8.0 percent GDP growth for the next decade, supported by a pickup in industrial and agricultural output.

"There is no indication that there is any deceleration in the overall growth of the Indian economy," Singh told a press conference.

"The short-term economic situation has worked out in a manner we would not have liked it to go. The reason for this is inflationary pressures which is a matter of concern," he added.

"But we have adequate stocks of food grain, adequate stocks of foreign exchange. The industrial growth for this year has been much better (than last year) and the export growth has also been much better."

Oil prices have spiralled in India, which imports 70 percent of its crude needs, helping push up inflation which hit a three-and-a-half-year high of 8.17 percent in the week ending August 21.

India's central bank in May forecast 6.5 to 7.0 percent growth for the fiscal year 2004-2005.