IMF projects India's growth at 7.4 pct in 2018

The International Monetary Fund (IMF) on Thursday said that it expects India to re-emerge as one of the fastest growing major economies in the 2018 - 2019 period, projecting the country's growth rate at 7.4 percent in 2018.

Further, the international financial organisation forecasted a rate of growth of 7.8 percent for 2019.

The IMF added that growth in India is picking up, after falling sharply in the second quarter of 2017.

It explained that the increase is mainly due to the strong private consumption, as well as fading transitory effects of demonetisation and implementation of the national Goods and Services Tax (GST).

The body also added that India's projected growth provides an offset to China's gradual slowdown.

The world agency believes that India will leave its nearest rival China behind, which is expected to grow at 6.6 percent in 2018 and 6.4 percent in 2019.

Earlier on April 17, the World Bank noted that the Indian economy had recovered from the effects of demonetisation and the GST and predicted a growth rate of 7.3 percent for the country in 2018.

The apex international financial institution noted that India should strive to accelerate investments and exports to take advantage of the recovery in global growth.