Expressing optimism and giving hope to the country, the Union Finance Minister P Chidambaram said that the economy would bounce back. Speaking after laying foundation stone for Indian Bank's new head office, the FM said that a "right attitude and patience" could help the country face the problems like soaring inflation.

Saying that it is common for fast growing countries to see a patch of inflation, Chidambaram said, "Fast growing economies (like India) will face such problems. But the right attitude, patience and grit can help us not only face the problem but also tackle it."

"We came out of crises like the 1997-98 Asian financial crises and the 1989-90 foreign exchange reserve crisis. Can't we come out of the present situation?" he said.

He pointed out that India had successfully bailed itself out of other crisis like the "first oil shock in 1973" and the 24 per cent inflation rate in 1979-80 and said that this crisis would not be a problem for the country as well.

"Despite the growing inflation (at 11.63 per cent for the week ended June 21), banks are still issuing loans and education loans alone to the tune of Rs 20,000 crore has been disbursed to 12 lakh students in the country," he said.

Explaining to the gathering present at the ceremony, the FM reiterated that the increasing rates of crude oil had influenced prices commodities and metals, which had eventually lead to an overall rise in prices and hence, inflation.

"But we can patiently handle the situation using globally accepted economic formulae," Chidambaram suggested.

He also touched base on various questions over the achievability of the nine percent growth rate which the country has seen over the last 2 years, he said that since India was a growing economy, it was a "different ball game" to finance a growth rate of nine per cent against the five per cent a few years back.

"Credit flow and money flow has expanded, as is the case with capital flow from abroad. Sometimes it leads to embarrassments like inflation, but we have to tackle it," the minister added as his final remarks.