India is projected to grow at 7.3 per cent in 2018 and 7.4 per cent next year, the IMF said Tuesday in its latest report, predicting India to regain the tag of the world’s fastest growing major economy this year, crossing China with more than 0.7 percentage points.

In 2017, India had clocked a 6.7 per cent growth rate. In India, important reforms have been implemented in the recent years, including the Goods and Services Tax , the inflation-targeting framework, the Insolvency and Bankruptcy Code, and steps to liberalise foreign investment and make it easier to do business, the International Monetary Fund said in its latest World Economic Outlook .

“India’s growth is expected to increase to 7.3 per cent in 2018 and 7.4 per cent in 2019 , up from 6.7 per cent in 2017,”.

This acceleration, the world body said, reflected a rebound from transitory shocks , with strengthening investment and robust private consumption.

India’s medium-term growth prospects remain strong at 7 per cent, benefiting from the ongoing structural reforms, but have been marked down by just under a half percentage point relative to the April 2018 WEO, it said.

If projections turn out to be true, then India would be the fastest growing major economy of the world, crossing China with more than 0.7 percentage point in 2018 and an impressive 1.2 percentage point growth lead in 2019.

For the record, the IMF has lowered the growth projections for both India and China by 0.4 per cent and 0.32 per cent, respectively, from its annual April’s WEO. Released in Bali during the annual meeting of the IMF and the World Bank, the IMF’s flagship WEO said its 2019 growth projection for China is lower than in April, given the latest round of US tariffs on Chinese imports, as are its projections for India.