Reiterating that India would be the second fastest growing economy this year as well, the confederation head said there was a good momentum in demand picking up, as evident from early or green shoots as of March and April.

The world has reached the bottom of commodity prices in April. There will be some inflationary pressures in the near future and because of the deficient monsoon, India would face some pressure on commodity prices.

'I think the government has been seized of the various issues that they have talked about. I see good progress in next few years in the Indian economy and in taking reforms further,' Srinivasan noted.

With respect to movement of goods and services within the country, Srinivasan lamented that there was no 'FTA' (free trade agreement) within India as there were still check posts between states.

'With GST (good and services trade) coming (from April 2010), a major barrier will be lifted on internal trade. I think that is the biggest reform the government is doing.'