Indian economy to increase growth to 8%, predicts Moody’s

Indian construction workersThe Indian economy will grow by 7.5% this year and 7.7% in 2018, the global ratings agency Moody’s Investors Service predicted today, with the growth rate gradually accelerating to around 8% over the next three to four years.
The negative impact of last year’s demonetization on the economy has been limited in size and duration, it said, noting that the ruling BJP’s victory in the Uttar Pradesh state elections indicated that the government has remained politically popular despite the unpopularity of its decision last November when it suddenly pulled large denomination notes out of circulation.
Modi’s government had been successful in pushing through several key reforms including liberalization of foreign direct investment rules in a number of key sectors, including defence, railway infrastructure, civil aviation and insurance, it added. However, it also cautioned that persistent banking sector weakness from a high proportion of delinquent loans on bank balance sheets could act as a brake on growth, if not resolved, by constraining credit for investment related activity.
Source: indiatimes