However it cautioned that balance sheets in the banking sectors will prevent strong investment rebound in the near term. The UN World Economic Situation and Prospects as of mid-2017 report has revised downward India's economic growth forecast for 2017 and predicted a 0.3 percent increase from 7.6 percent projected at the beginning of this year. "Despite temporary disruptions from the demonetization policy, economic conditions in India remain robust, underpinned by sound fiscal and monetary policies and the implementation of key domestic reforms. Yet, stressed balance sheets in the banking and corporate sectors will prevent a strong investment rebound in the near term," the report said. Despite India's growth being revised downward, it remains the fastest growing large developing economy, way ahead of China which is projected to grow at 6.5 per cent in 2017 and 2018.

Source: India Today May 16, 2017 18:30 UTC