Indian economy in recent times has constantly facing threats from inflation. But now the Chief Economic Advisor to the Ministry of Finance Dr. Kaushik Basu said that inflation would soften by the month of September this year.

Basu was in Chennai, Tamil Nadu on July 3, 2012, to address a workshop on the Indian Economy and the Economy Survey. The Chief economic advisor also talked about FDI in detail, the currency situation and corruption.

Basu while talking about inflation said that it is expected to go below 7%, but also said that there would be no change in the next two months while the inflation figures would remain the same. He also said that the inflation figures are high but are much better compared to the other emerging countries.

The economy continues to be coming down slowly and is in the right direction, but still continues to be very high. While talking about the FDI in retail, Basu said that the retail sectors needs to the FDI. The FDI should be allowed so that the multinationals enter in to this sector. This was also a topic which received huge criticisms. The chief economic advisor also talked about corruption and said that the country badly needs to control on corruption.