India to grow at 7.2% in FY18, will accelerate to 7.7% by FY20: World Bank

Says the projected growth rate is due to the note ban impact, protracted investment recovery

The World Bank on Monday projected a 7.2 per cent growth rate of gross domestic product (GDP) for India in the financial year (FY) 2017-18 due to the impact of demonetisation and protracted investment recovery.

In its bi-annual economic India Development Update, the World Bank said the growth will accelerate to 7.2 per cent from 6.8 per cent in FY17.

"Economic activity ought to accelerate in FY18. GDP is projected to grow at 7.2 per cent from 6.8 per cent in FY17," it said in a report released in New Delhi.

India's growth would increase gradually to 7.7 per cent by FY20, the report added.