Chief Economic Advisor Kaushik Basu is expecting the Indian economy to return to a high growth rate trajectory from October of this year.

Dr. Basu said, "We want to work hand-in-hand with industry. There is [an] element of trust problem between industry and the 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."

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.

Prime Minister Manmohan Singh has taken charge of the finance ministry until a new finance minister is appointed. The Prime minister might hold the portfolio until the next Parliament session and will take steps to boost the slowing economic growth in the country and boost investor confidence.

Basu said pointed out that the there is no dilution of the policy with the taking over of the ministry by the Prime minister.