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India likely to hit 7.7 growth rate

ENEWSTIME Desk by ENEWSTIME Desk
May 9, 2017
in Main
India likely to hit 7.7 growth rate
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May 9, 2017: The International Monetary Fund predicts India’s Growth rate is likely to bounce back post-demonetization period, News agency reports mentioned and added, however, it is important to focus on improving market efficiency.  According to Agency reports, the IMF said, India’s growth is expected to rebound to 7.2 per cent in the 2017-18 fiscal and 7.7 per cent in 2018-19 after growth rate slumped due to disruptions inflicted by demonetization. On November 8, Prime Minister Narendra Modi announced scrapping of Rs 500 and Rs 1000 notes as well as put a cap on maximum amount of withdrawal with immediate effect.

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Apart from predicting growth rate, IMF has also suggested removal of several long-standing structural bottlenecks. These bottlenecks are impeding the functioning of the market and henceforth, removing bottlenecks are important to enhance market efficiency. It said temporary disruptions caused by cash shortages accompanying the currency exchange initiative are expected to gradually dissipate in 2017 as cash shortages ease.

The IMF also mentioned, disruptions caused by demonetization would also be offset by tailwinds from a favorable monsoon season and continued progress in resolving supply-side bottlenecks.

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