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Govt. hopeful Indian economy will bounce back from October onwards

June 29, 2012 - New Delhi

Chief Economic Advisor in the Finance Ministry, Kaushik Basu, on Friday expressed hope that the Indian economy will bounce back from October onwards.

Asserting that the government was working to remove trust problems with the industry, Basu said: "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."

"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," he added.

Basu further said there has been no dilution in any of the recent policy decisions.

"Actually, I don't think that any policy step has been diluted, any policy step of recent months. The massage that we were giving for actually last couple of months, including during the time when Pranab Mukherjee was the Finance Minister, is the same message that we do want this particular sector, the industrial sector to do well and we want to be as cooperative as possible," said Basu.

"Now, you know what I was referring to about the regulatory system is something, which we inherited some 60 years ago. So, that was not a comment about what can be done over the next couple of months, but that is the direction in which we must go. We have been trying to do that over the last couple of years and what you have heard from the Prime Minister is simply a reiteration of what was there already on the agenda," he added.

He underlined the need for working hard to boost the manufacturing sector.

Basu's comments come amid attempts to bring the Indian economy back on track following Prime Minister Dr. Manmohan Singh taking additional charge of the Finance minister after Pranab Mukherjee resigned from the Union Cabinet earlier this week to contest the presidential election.


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