According to the International Monetary Fund, the economy of India is gaining momentum, and growth prospects look optimistic.

Ranil Salgado, the head of the IMF team in India, said that the economy of India is projected to grow to around 7.3% during the current financial year, beginning in April 2018, from 6.7% recorded a year ago.

At the same time, inflation in the country grew partly because of the decline in the economic recession.

According to Salgado, the tax on goods and services should increase productivity and promote medium-term potential growth, and also provoke the government to increase much-needed social and infrastructure costs.

He added that India should intensify its reform efforts in order to maintain the current positive growth rate.