India to grow at 7.4 percent in 2018: IMF

Written by April 18, 2018 08:58

New Delhi: The International Monetary Fund, IMF has said that India is expected to grow at 7.4 percent in 2018 and 7.8 percent in 2019 and would re-emerge as one of the fastest growing major economies in the period.

The IMF explained this is due to the strong private consumption as well as fading transitory effects of the currency exchange initiative and implementation of the national goods and services tax.

It said the growth is picking up after falling sharply in the second quarter of 2017 due to one-off factors.

The world agency said India will leave its nearest rival China which will grow at 6.6 in 2018 and 6.4 percent in 2019.

IMF said, two major economic reforms, demonetisation, and GST resulted in a slightly lower growth rate of 6.7 percent in 2017. It said that India’s projected growth provide some offset to China’s gradual slowdown.

Indian economy on way to recovery

According to the IMF, India has made progress on structural reforms in the recent past, which will help reduce internal barriers to trade, increase efficiency, and improve tax compliance. The report, however, said, while the medium-term growth outlook for India is strong, an important challenge is to enhance inclusiveness.