Rising inflation rates notwithstanding, India will be the fastest growing economy in the world this year, a top government source said on Thursday.

While inflation continues to be above the comfort zone, the economy has continued on its recovery path, supported by pent-up demand for services and higher industrial output. The government, the source said, is taking continuous steps and engaging with the RBI to bring down inflation.

Inflation has stayed above the upper tolerance limit of 6 per cent for six straight months.

There is no chance of growth slowing and India will be the fastest growing economy this year and the next, the source added. On swelling trade deficit, the source said the current account deficit (CAD) should steady going forward.

The government is continuously monitoring borrowing cost, the source said.

Regarding cryptocurrency, the source said caution is necessary and the recent WazirX episode has exposed many darker sides of crypto transactions.