India to grow over 7%: OECD

India’s economic growth is poised to rise to 7.4% in 2018 and 7.5% in 2019 as the economy has been able to navigate through growth obstacles due to demonetisation and impact of GST rollout, a report from the Organisation for Economic Cooperation and Development showed.

China’s GDP growth is projected to moderate to 6.7% in 2018 and to 6.4% in 2019, the report said. The forecast for China and India is in line with other multilateral agencies such as the International Monetary Fund, the World Bank and the Asian Development Bank, which see a growth pick-up for the Asia’s third largest economy.

“China’s growth rate surpassed the government’s target, while India managed to navigate quite well the growth obstacles tied to lagged demonetisation effects and the sales tax reforms,” OECD’s update to the economic outlook for Southeast Asia, China and India 2018 said.

It said private spending should benefit from rising credit growth. Improvements in revenue intake should also help the government expand spending coverage. But it cautioned that the issues related to banks’ non-performing assets will require careful attention.

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