New Delhi: Finance Minister Pranab Mukherjee on Tuesday exuded confidence that economic growth will gather momentum and inflation would moderate though hovering around 6-7 percent level for the time being.
Addressing industry captains at CII's annual meet, the minister also stressed the need to be ever ready to deal with any external shocks on real time basis.
"I am confident that we would progress in recovering some of our pre-crisis growth momentum in 2012-13," he said.
Economy which grew at an average rate of 9 percent before global crisis, slowed to 6.7 percent in 2008-09.
There was recovery in subsequent two years as the GDP expanded by 8.4 percent but is estimated to again slow down to 6.9 percent in 2011-12.
The government expects the GDP growth in 2012-13 at 7.6 percent.
On the price situation, Mukherjee said sustained high level of inflation had been a cause of worry for policy makers, but it has now started moderating.
However, he expressed concern over spike in food inflation in March and called for bridging the gap between demand and supply.
"I am confident that during the current financial year, the rate of inflation would see some moderation and remain within 6-7 percent. Though it is high, but for the time being, perhaps, we will have to rest with it," he said
Inflation, which remained high during 2010 and most of 2011 has moderated to 6.89 percent in March.
Expressing concern over the current phase of slowdown in industrial production he said, "The slowdown can be attributed both to domestic and global factors".
"Domestic factors, namely the tightening of monetary policy in order to control inflation, resulted in slowing down of investment and growth in the industrial sector," he added.