Moody's forecast: India to grow at 7.6 per cent in 2018

International credit rating agency Moody's Investors Service on Wednesday prognosticated Indian Economy to grow at 7.6 per cent in the ongoing calendar year and at 7.5 per cent next year in 2019 showcasing signs of economic recovery from the impact of demonetisation and rollout of GST.

Moody’s said that there are signs that the Indian economy is starting to recover from the lean growth patch due to the negative impact of the demonetisation undertaken in 2016 and some disruptions related to the rollout of the Goods and Service Tax last year. It also said that the Union Budget 2018 included some measures to stabilise the rural economy that was disproportionately hit by the demonetization policy and was yet to recover.

The rating agency also reiterated the fact that the bank recapitalisation plan of the government would also help credit growth over time.

Moody’s also raised the US GDP forecast for 2018 to 2.7 per cent from previous 2.3 per cent.

Earlier this month, commenting on the Union Budget 2018, the rating agency had said that the budget would benefit corporate, infrastructure and insurance sectors and that the overall budget stroke a balance between fiscal prudence and growth.