Growth to rebound from October, reforms likely: Kaushik Basu

Chief Economic Advisor Kaushik Basu has said India's economic growth, which dipped to 9-year low of 6.5 per cent in 2011-12, is expected to rebound from October, adding that the government is working to remove "trust problems" with the industry.

"We are hopeful that economy is going to bounce back within 4-5 months. I mean its October. Before that I can't realistically say that there will be an improvement, but October onwards," Basu said on the sidelines of 'Statistics Day 2012'.



"We want to work hand in hand with the industry. There is element of trust problem between industry and government that has happened. Over the last several months we were trying to correct it and we will try to correct this as much as possible in the coming months."

Basu also said inflation, which is hovering at over 7.5 per cent, will start moderating from September onwards.

Assuring that economic growth will pick up any way, Basu outlined the government's agenda saying "if we can together a couple of reforms" things would speed up.

"We have been stressing that we will have to get a couple of reforms in place for which the big stumbling block has been getting all the political parties in the coalition together. So that we have been working," he added.

Without specifying about the reforms, Basu just said "these have been part of government agenda for the last 2-3 months".

His comments come amid hectic activity to spur the economy following Indian Prime Minister Manmohan Singh's taking charge of the finance portfolio after Pranab Mukherjee resigned this week to contest presidential election.

With PTI inputs