New Delhi: Moody’s Investors Service Wednesday estimated that India will grow 7.6% in calendar year 2018 and 7.5% in 2019, amid signs of economic recovery from impact of demonetisation and goods and services tax (GST).

“There are some signs that the Indian economy is starting to recover from the soft growth patch attributed to the negative impact of the demonetisation undertaken in 2016 and disruption related to last year’s rollout of the GST," it said.

The budget for 2018-19 includes some measures that could stabilise the rural economy that was disproportionately hit by the demonetisation policy and is yet to recover, it said. “As we have said before, the bank recapitalisation plan should also help credit growth over time, thereby supporting growth," Moody’s said.

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