International Monetary Fund, on Tuesday said that the impact of demonetisation in India has completed and the economy is set for a stable growth in the coming years. It has predicted Indian economy to grow by 7.2 percent in 2017-2018 and 7.7 percent in 2018-2019.
In its regional economic outlook, IMF stated that the disruption because of demonetisations is temporary and it will eventually ease out within this year as the cash shortage eases.
Among the other factors impacting the growth will include a favourable monsoon and positive trend of investment in India. IMF said that though the progress will be uneven across sectors, it expects that India will continue to rise as one of the leading economies of the world.
Apart from India, the growth of Asia is predicted to be 5.5 percent in 2017, 2 points more than the growth rate in 2016. Strong recent data from Japan and China shows a positive trend in the economy growth as well.
IMF also pointed out a number of challenges for the Indian economy. It added that the major challenge in front of the government of India remains as to how to increase the productivity in agricultural sector. Agriculture employs approximately half of total indian workers and addressing that sector will remain a key challenge.