Chief Economic Advisor to the Finance Ministry Kaushik Basu, today said inflation would soften by September this year with the expectation it would go down below seven per cent.
Addressing a workshop on ‘The Indian Economy and the Economy Survey,’ Dr Basu, however, said there would be no change in the next two months with the inflation remaining the same.
He added that the inflation figure, though on the higher side, was much better when compared to emerging countries.
Saying controlling inflation was no easy task, Dr Basu said it can happen only with a combination of fiscal and monetary policies. Turning to FDI in retail, Dr Basu said there was a need to open up retail to FDI and allows MNCs to enter.
”This is a topic which saw huge and loud criticism. I sense that a large group would like MNCs coming into this sector,” he added.
—UNI