Economy will rebound from October, says Kaushik Basu

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India's economy is expected to bounce back from October onwards, Chief Economic Adviser Kaushik Basu said on Friday.

Asia's third largest economy is growing at its slowest pace in nine years, the rupee is the worst performing currency in the region this year, and the country faces the threat of having its sovereign credit rating downgraded to junk.

Many investors and economists blame weak leadership and muddled policies that have failed to curb government spending and alienated many foreign investors.

However, Prime Minister Manmohan Singh's latest efforts to turnaround investor sentiment have stoked hopes of an economic revival.