IMF projects India’s growth rate to 7.4% in 2018 and 7.8% in 2019

The International Monetary Fund in the latest World Economic Outlook (WEO) has projected India to grow at growth rate at 7.4% in 2018 and 7.8% in 2019, up from 6.7% in 2017. The report stated that India in 2018 and 2019 would re-emerge as one of the fastest growing major economies. 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. IMF said that the two major economic reforms, demonetisation and GST, resulted in a slightly lower growth rate of 6.7% in 2017. 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.

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