Economy likely to do better in 2012/13: Basu
However, Basu said that public finances were expected to remain under pressure in 2012/13.
Although the official forecast for 2012/13 is still to be released, some private economists now expect the annual economic growth to be below 7 percent, lower than 7-7.5 percent widely expected to for the year to end-March 2012.
"I would forecast next year to be better than the present one," Basu said, predicting growth in the current year of close to 7.5 percent, a pick up the following year and a return to "full-steam" growth of around 9 percent by 2013/14.
In December, the government slashed its full-year growth forecast for the current fiscal year to about 7.5 percent from 9 percent amid slowing domestic and global demand.
Gross domestic product growth slowed to 6.9 percent in the quarter to end-September, its weakest pace in more than two years. Industrial output contracted in October for the first time in more than two years.
"The US is on a slow rise. Europe is still on the brink but if you ask me to bet, I would say, on balance it would escape falling into another recession," he said.
"If these expectations are right, then I think India has enough fundamental strength that we will get out of the current slowdown and begin to move."