IMF revises India's growth forecast to 6.8% in FY17

Says PSBs should be capitalised and their NPAs fully recognised

India’s economic growth will be 6.8 per cent in 2016-17 — against the official advance estimates of 7.1 per cent — due to demonetisation, if the projections of the International Monetary Fund (IMF) come true.

The IMF had earlier said growth in 2016-17 would be 6.6 per cent.

In its World Economic Outlook, released on Tuesday, the Fund retained its January forecast of 7.2 per cent growth in 2017-18, though it is lower by 0.4 percentage points than the 7.6 per cent forecast in October, before the note ban. 

For 2018-19, the growth rate was projected at 7.7 per cent. The Fund advised