India's Union Finance Minister Pranab Mukherjee has said that he expects the inflation to fall to the level of 6 to 7 per cent by March 2012 if the trend of the fall continues.

"It is true that we are going through difficult times, not just in India, but all over the world," he said. He was speaking to media persons after a meeting with the Chief Ministers of southern States, Union Territories, and heads of public sector banks.

India's inflation has fallen to the level of 9.11 percent in November from a year earlier, which is its lowest level in a year.

The commerce ministry said in a statement in New Delhi today that the inflation fell to 9.11 percent from 9.73 percent in October this year. The fall in inflation has prompted many to believe that the central bank would half its increase in interest rates and might even consider decreasing its key rates to boost growth in the Indian economy.

The analysts are expecting the RBI to keep the rates unchanged after industrial production in the Indian economy fell. The RBI will react to the slowing inflation and may now focus on improving growth in the economy.

The central bank has said that the objective is to slow inflation to 3 percent in the medium term in the country. The BSE India Sensitive Index (SENSEX) experienced its biggest fall since July 2009 after the government decided to go on back on its decision on allowing FDI in retail sector.