He also said the government was working to remove "trust problems" with the industry. "We are hopeful that the 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," he told reporters at the 'Statistics Day 2012' meet organised by the government.
He also said that inflation, which is hovering at over 7.5 per cent, will start moderating from September onwards. Basu further said, "We want to work hand in hand with the industry. There is an 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 further said that while economic growth will pick up anyway, "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 Prime Minister Manmohan Singh's taking charge of the finance portfolio after Pranab Mukherjee resigned this week to contest presidential election.