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NEW DELHI (Reuters) - Finance Minister Palaniappan Chidambaram said on Thursday he expects another year of high growth in the fiscal year starting in April, and urged industry to hold prices down to fight inflation.

The Indian economy, Asia's fourth largest, is estimated to grow 9.2 percent in the fiscal year ending March 2007.

"India's growth story is intact. I look forward to another year of high growth," Chidambaram told businessmen, a day after presenting the annual budget in which he raised spending on health, education and farming.

Fresh from defeat in two state elections on Tuesday that reflected voter anger about rising prices, the ruling Congress slashed duties on a host of items in the budget to rein in inflation, which rose to its highest in more than two years in early February.

"I will urge industry to hold the price line in the fight against inflation. Inflation can be moderated through duty cuts and monetary steps," Chidambaram said.

"Supplies have to be augmented."

A consequence of India's strong growth in recent years has been rising inflation as supplies fail to keep pace with demand, and infrastructure such as ports and power has struggled to cope.

The central bank has tightened policy -- including three times since early December -- and Deputy Governor Rakesh Mohan said on Wednesday it would keep taking action as necessary.

The annual wholesale price inflation rate rose to 6.73 percent in early February, fuelled partly by food prices, and has emerged as a major headache for the communist-backed ruling coalition.