Addressing economists, investors and academicians in Washington, Basu said the fundamentals of the Indian economy are strong enough in the medium and long term to sustain a healthy growth rate of over 8 per cent.
India's economic growth rate slipped to 6.9 per cent in the second quarter this fiscal, the lowest in nine quarters.
Amid rising global commodity prices and high inflation, the government is likely to scale down India's GDP growth projection for the 2011-12 financial year next month from 9 per cent estimated in February, chief economic advisor Kaushik Basu on Friday said.
Supporting the industry ministry's proposal to set up a sovereign wealth fund to finance infrastructure projects, Chief Economic Adviser Kaushik Basu on Monday said India can use a part of its large foreign exchange reserves to create the fund.
The robust economic growth notwithstanding, India has garnered a lowly 119th rank in the United Nation's Human Development Index due to poor social infrastructure, mainly in areas of education and healthcare.
Ministry wants to take views of industry on the issue, before giving its opinion to the Securities & Exchange Board of India.
Amid signs of moderation in price rise situation in the country, the January inflation numbers are likely to drop below 7 per cent, said Chief Economic Adviser Kaushik Basu said.
The government had pegged GDP growth around nine per cent in the Budget for 2011-12.
His comments followed release of latest data showing food inflation at nearly four-year low of 4.35 per cent during the week ended December 3, reflecting a decline in prices of essential items like vegetables, onions, potatoes and wheat.
The sector is in turmoil since the Andhra Pradesh government introduced new legislation to regulate it. The state accounts for a third of MFIs' lending.
In the backdrop of questions on functioning of microfinance institutions (MFIs), Chief Economic Advisor to the government of India, Kaushik Basu, has called for regulating MFIs for more transparency in their loan contracts with the beneficiaries. However, he also warned that over-regulation of MFIs could imperil their survival.
The government will release revised growth estimates for the current financial year by the end of June.
Describing the current level of inflation as "unacceptable", Chief Economic Adviser in the Finance Ministry Kaushik Basu on Thursday indicated the government will revise downward the growth forecast for 2011-12.
The finance ministry is also collating the data on entire food supply chain to identify the bottlenecks in the process.
The RBI working group's proposal to allow corporate houses to set up banks is a 'good-looking' step in a 'bad direction' and may lead to crony capitalism and eventual financial instability, former chief economist of World Bank Kaushik Basu said on Thursday. Basu further said that there is a good reason why all successful economies have a clear dividing line between industries and corporations on the one hand, and banks and lending organisations on the other.
Basu also said the economic growth in the second (July-September) quarter is unlikely to be on the higher side.
"I am not of the view that diesel price deregulation is inevitable and that is the position taken by petroleum ministry right now. Given the inflationary situation right now, we don't want to do that...," chief economic adviser Kaushik Basu told reporters on the sidelines of a CII event here.
Referring to the impact of political turmoil in West Asia, he said the crisis would not hurt the economy unless the crude oil prices rise to 'abnormally' high levels.
As food inflation surged to 18.32 per cent, a top adviser in the finance ministry on Thursday agreed with Home Minister P Chidambaram that the government does not have all the tools to control food prices since it is an enabling body.
The price of the vegetable, which is ruling at Rs 60 per kg, went up to Rs 80 per kg last fortnight.
CRR is the proportion of deposits each bank must keep in the form of cash.
A top Finance Ministry advisor said on Thursday that merely arresting people will not solve the problem of corruption, as the whole issue needs to be tackled in a systematic manner.
Economy grew by 8.6 per cent in 2010-11.
The government on Friday said inflation continues to be a matter of concern and needs policy action to contain it, although prices are expected to start falling slowly over the next two to three months.
Allowing futures trading in commodities will not fuel inflation, government's chief economic advisor Kaushik Basu said on Wednesday.
The comment assumes importance, since the RBI on Thursday expressed doubts over the efficacy of industrial growth data in mirroring the ground reality.
In a conversation with Kaushik Basu, professor in the Cornell University in the United States and India's former chief economic advisor, Gandhi said he is all for internal democracy in the Congress, which fought for India's independence, gave the country its Constitution and stood for equality.
After a fortnight of being in single digits, food inflation for the week ended July 31 shot up to 11.4 per cent from 9.53 per cent the week earlier on the back of a spike in prices of cereals, milk and fruits.
Chief Economic Advisor Kaushik Basu says 9 per cent growth for the next financial year is 'well within target'.
Industrial growth fell for the second consecutive month to a 16-month low of 4.4 per cent in September.
Economic growth in the second quarter will be lower than the 8.8 per cent expansion witnessed in the first quarter, Chief Economic Advisor Kaushik Basu said on Monday.
Inflation, which at one point was below zero, soared to 8.56 per cent in January, surpassing the RBI's year-end projection of 8.5 per cent.
According to latest figures, food inflation stood at 19.83 per cent during the third week of December.
The ministry is awaiting some more data in the next few days to arrive at a precise number.
Inflation will continue to fluctuate over the next three months before it starts falling steadily, chief economic advisor with the finance ministry Kaushik Basu said on Friday.
Chief economic advisor Kaushik Basu on Thursday said that inflation may come down to 6 to 7 per cent in the next three months and that there was no need for any capital controls to check inflows as have been at a comfortable level.
The government's Chief Economic Adviser, Kaushik Basu, on Wednesday said economic growth is expected to rise to 8.5 per cent in the fourth quarter, while inflation is likely to be significantly lower from May-end
The country's inflation would be on the higher side, Basu said, adding that 'our core inflation, excluding food and fuel prices, is around 5.5 per cent.'
In the documentary, Sen speaks of social choice theory, development economics, philosophy and the rise of right wing nationalism across the world including India.
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The Keynesian advice comes after Finance Minister P Chidambaram has said he considers the fiscal deficit at 4.8 per cent of gross domestic product in 2013-14 as a 'red line'.
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