NEW DELHI: The International Monetary Fund ( IMF ) has pared India’s growth forecast for FY18, citing the lingering impact of demonetisation and disruption caused by the goods and services tax ( GST ) but expects a revival as structural reform bears fruit. That will help India win the title of fastest-growing economy back from China.The Indian economy will grow 6.7% in FY18 against 7.2% estimated earlier, according to the latest edition of the IMF’s flagship World Economic Outlook. FY19 growth is pegged at 7.4% against 7.7% estimated earlier. GST was put in place on July 1.India is set to regain the tag of fastest-growing major economy in FY19 with China forecast to grow at 6.5%. It predicts an acceleration in per capita real output growth for India from 5.3% in the current year to 6.8% by FY23.Key structural reforms will boost growth, the IMF said.

Source: Economic Times October 10, 2017 13:13 UTC