The Indian growth story continues to be intact with the GDP expected to grow around 7.5% in the current financial year and improve further in the coming years, said industry body FICCI on Thursday.

The slowing down of the industrial output growth in May (3.2%) and the inching up of the retail inflation in June to 5% are short-term challenges which are being pro-actively acted on by the government and the RBI, and these should not be seen in any way as hurting the signs of revival in the economy significantly, it said.

"While the industrial output growth is expected to rebound in the next few months; the rise in inflation is being watched by the RBI closely, and the apex bank and the government will certainly take necessary measures to keep it at the manageable levels," said Rashesh Shah, President, FICCI.

"The Goods and Services Tax (GST) will play the role of a catalyst in this. While the GST collection trends clearly indicate towards a positive sentiment in the economy, the national integrated indirect tax structure will also bring down inflation, going ahead," said Mr. Shah.

With the GST Council and the Central Government open to taking measures for rationalising the GST rate structure, bringing in the excluded items in the GST ambit, and also simplifying the tax administration, the GST is all set to boost the GDP growth further, added Mr. Shah.

"Equally important is the fact that GST has shown that industry, and the country on the whole, is ready for adopting big-bang reforms", he said, adding, "there is no doubt now that larger economic reforms involving both the Centre and the States are here to stay," said Shah.

Along with this, the reform measures like IBC and RERA, which have already started yielding good results, will help in strengthening the revival of animal spirits and take the GDP growth beyond 8%, added Shah.