International Monetary Fund (IMF), the international organization headquartered in Washington, has estimated that India's GDP growth will bounce back to 7.2% in the 2017-18 fiscal, and increase to 7.7% in 2018-19. However, for that to happen, it recommended that the long-standing structural restrictions be removed so that market efficiency can be increased.
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After demonetisation, there was a temporary disruption in the Indian economy, caused by the lack of ready cash available with spenders. This disruption, said
Other than remonetisation being substantially completed, a favourable monsoon season and developments in removal of supply-side difficulties will also help in balancing this disruption.
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"Headwinds from weaknesses in India’s bank and corporate balance sheets will also weigh on near-term credit growth. Confidence and policy credibility gains, including from continued fiscal consolidation and anti-inflationary monetary policy, continue to underpin macroeconomic stability," the IMF said.
Talking of Asia on the whole, the report estimates that the growth will accelerate to 5.5% this year from 5.3% in last fiscal.