Dr. Kaushik Basu, Chief Economic Advisor, Government of India has said that he expects the inflation in the country to moderate by September this year.

He said during a workshop on 'The Indian Economy and the Economy Survey' in Chennai that the inflation is expected to soften by September. He pointed out that the ministry expects the September inflation to be below 7 per cent.

Dr. Basu said that the slowdown in the Indian economy was caused by the crisis in the eurozone and some missteps by the government. He is expecting the Indian economy to return to a high growth rate trajectory from October of this year. Dr. Basu also advised exports to make use of the low value of the rupee and increase exports to other countries.

The business sentiment in the country is appearing to improve since Prime Minister Manmohan Singh took charge of the Finance portfolio from Pranab Mukherjee. The finance ministry said in its draft guidelines that General Anti Avoidance Rules will come into effect from April 1, 2013. The draft guidelines have also said that only those that foreign institutional investors will come under GAAR, who have opted for dual taxation avoidance agreements.