The International Monetary Fund (IMF) has said that India's economy will grow at 7.4 per cent in 2018 and 7.8 per cent in 2019. Following this, India is expected to re-emerge as one of the fastest growing major economies during this period.
IMF also informed will go past its rival China in terms of economic growth as the neighbouring country is expected to will grow at 6.6 in 2018 and 6.4 per cent in 2019.
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 two major economic reforms, demonetization and GST, resulted in a slightly lower growth rate of 6.7 per cent in 2017. It said that India's projected growth provide some offset to China's gradual slowdown.
