India needs practical solutions to address its economic slowdown, Finance Minister Pranab Mukherjee said on Thursday.

Pranab

Pranab Mukherjee

He also told an industry event that inflation remained unacceptably high and that this along with high interest rates was hurting growth, although economic fundamentals were strong.

Asia's third-largest economy is now expected to grow by 7.25 to 7.75 percent in the fiscal year ending next March, the government said in a mid-year review last Friday, down sharply from an estimate of 9 percent issued in February.

Inflation held stubbornly above 9 percent in November, maintaining pressure on the central bank to keep interest rates steady at a policy meeting on Friday.

Reflecting concerns about the economy, the rupee sank to a record low for the fourth day in a row on Thursday, falling to 54.30 to the dollar, as investors grew increasingly bearish about the economic outlook.