In its global growth forecasts for 2018 and 2019, Moody’s said the Budget for fiscal 2018-19 includes some measures to stabilise the rural economy that was disproportionately hit by demonetisation.

Moody’s has kept its growth forecast for India in the calendar year 2018 unchanged at 7.6 percent. It predicts a growth of 7.5% in 2019.The rating agency which had raised India’s investor grade sovereign rating to Baa2 from Baa3 in November has said the Indian economy is recovering from the soft growth patch it attributed to disruptive measures like demonetisation and Goods and Service Tax.

In its global growth forecasts for 2018 and 2019, Moody’s said the Budget for fiscal 2018-19 includes some measures to stabilise the rural economy that was disproportionately hit by demonetisation. Moody’s has been bullish about the Indian economy. The November upgrade in the sovereign rating took place after 13 years. It has projected a substantial rise in India’s real GDP growth from 6.7 percent in fiscal 17-18 to 7.5 percent for 2018-19.

Moody’s has noted that bank recapitalisation will help credit growth over time, thereby supporting growth.G20 economies will collectively grow 3.4 percent in 2018 and 3.2 percent in 2019, up from prior forecasts of 3.2 percent and 3.1 percent.

The rating agency however struck a cautionary note saying the “Goldilocks” period of synchronised upward growth momentum, low inflation, low-interest rates, steadily rising asset prices and historically low volatility will gradually wane. adding that the recent return to volatility in the financial market is here to stay.

Prime Minister Modi had on Tuesday highlighted India’s economic advantages, also reminding global investors at the India Korea Business summit that India is the fastest-growing major economy in the world.