India's economy could grow at 7.4pc in 2018-19: RBI

India's economy could grow at 7.4 percent in the fiscal year to March 2019 after a “resilient performance” in the second half of the previous year, Reserve Bank of India (RBI) Governor Urjit Patel said.

The economy likely grew at 6.6 percent in the 2017/18 fiscal year against 7.1 percent a year earlier, but higher investments led to a significant pick in the second half, Patel said in his address to the International Monetary and Financial Committee in Washington.

Higher government spending, manufacturing and services helped India regain its status as the world's fastest growing major economy in the October-December quarter, surpassing China for the first time in a year. Asia's third-largest economy grew 7.2 percent in the December quarter, its fastest in five quarters.

The strong performance is likely to continue.