New Delhi: President Pranab Mukherjee today said inflation has fallen to a record low due to a number of decisive steps taken by the government and the economy is again on a high growth trajectory.

Delivering his address to the joint sitting of Parliament, whose budget session commenced today, he said, "Inflation and food inflation, in particular, are at a record low due to a number of decisive measures taken by the government."

Wholesale inflation turned negative for the second time in three months as fall in petroleum and food prices dragged it to a five-and-a-half year low of (-) 0.39 per cent in January.

The overall food inflation was at eight per cent.

The President further said that as a result of the government's sustained efforts and a series of policy initiatives, "our economy is again on the high growth trajectory."

According to the latest estimates, India's GDP is growing at 7.4 per cent, which makes the country the fastest growing large economy in the world.

Mukherjee said that capital formation, which faced a near stagnation in last few years, has increased.

Also, capital markets are upbeat and India's external sector is now far more resilient, particularly with a moderate current account deficit and broadly stable rupee, he added.

The President further said that the government has intensified efforts to bring greater efficiency and equity into tax system and prudence in expenditure management is also high on agenda.

A Constitutional (Amendment) Bill has been introduced to bring in Goods and Services Tax that will simplify the indirect tax regime, broaden the tax base and result in better tax compliance, Mukherjee added.--PTI