Inflation driven by high crude oil prices is a temporary phenomenon and the economy is gradually opening with both public and private investments picking up, senior government officials said on Friday.
The tourism and travel sector, which has been the worst hit, is also recovering gradually with international travel with some of the countries opening up, they added.
"At this point of time, it (inflation) is a worrying factor but I don't think this phenomenon will stay for long," Ministry of External Affairs Secretary for Economic Relations, Dammu Ravi said at a virtual event of the Public Affairs Forum of India (PAFI).
He was replying to a query on concerns around inflation across the globe.
He further said the whole world is going through a transition after having faced the COVID-19 crisis for two years.
"It is just now that things are showing up. Around the world, you see a different kind of equation that things are expensive, in the sense that oil has gone up very high now. It is driving up the commodity prices elsewhere. That's a worrying factor.
"We need to have a balance. Inflation that many countries are worried about is a temporary phenomenon," Ravi said.
Fuel prices in India too have spurted to record highs, leading to a rise in food prices and other commodities.
Ravi said India is looking at having partnerships with a greater number of countries for growth.
"Domestic market is important but we also need to compete on a global scale. Our exports for almost the last 10 years have been stagnant at around USD 300 billion and in that context Prime Minister's target set for USD 400 billion is indeed extraordinary," Ravi said.
All the international missions are working very closely to reach this target by the end of the financial year, he added.
The economic relations secretary noted that there is a need to focus on micro, small and medium enterprises (MSMEs) as they are a major source of job creation and exports.
"We need to bring back the debate to MSME and their role in the economy. We have been talking about it but I don't think much has been done in that area, specially in terms of making them sustainable and strong in the economy as participants," Ravi said.
According to official estimates, there are about 6 crore MSME creating more than 10 crore jobs and accounting for 40 per cent of the country's exports.