International Monetary Fund: India to grow at 7.7%

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International Monetary Fund: India to grow at 7.7%

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International Monetary Fund: India to grow at 7.7%

International Monetary Fund: India to grow at 7.7%


The International Monetary Fund (IMF) said, India's growth is expected to revive to 7.2% in the 2017-18 fiscal and 7.7% in 2018-19 after interruptions caused by demonetization, while endorsing the removal of enduring structural barriers to building up market efficiency.

The International Monetary Fund said in its regional economic outlook, the limited interruptions (primarily to private consumption) caused by cash shortages accompanying the currency exchange initiative are expected to gradually dissipate in 2017 as cash shortages ease.

The IMF said, "Such interruptions would also be offset by tailwinds from a favorable monsoon season and continued progress in resolving supply-side bottlenecks. The investment recovery is expected to remain modest and uneven across sectors as deleveraging takes place and industrial capacity utilization picks up, it noted.

In India, growth is projected to rebound to 7.2% in FY2017-18 and further to 7.7% in FY2018-19. 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".

As per the recent report, growth in Asia is forecast to accelerate to 5.5% in 2017 from 5.3% in 2016. Growth in Japan and China is changed upward for 2017 correlated to the October 2016 World Economic Outlook, owed mainly to extended policy support and strong recent data.

Growth is changed earthward in India due to limited effects from the currency exchange initiative and in South Korea owed to political suspicion.

Less growth in China is expected to be moderately offset by an acceleration of growth in India, establish by key structural reforms over the medium term.

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Students meet their teachers on an online platform that creates a virtual classroom setting. Teachers are able to share their screens and explain lessons and key concepts, the way they would have done on blackboards or smart boards, in conventional classrooms.

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