The IMF in its annual assessment of the Indian economy said  the Asian nation's growth will rise to 7.5 percent in 2015/16, driven by stronger investment following improvements to the business climate.

The report said that for continuing on this trend, India needs to revitalize the investment cycle and accelerate structural reforms.

“Growth numbers are now much higher and the current account deficit is comfortable, in part due to the fall in gold imports and lower oil prices,” Paul Cashin, IMF Mission Chief for India, was quoted as saying on IMF website.

“Spillovers from weak global growth and potential global financial market volatility could be disruptive, including from any unexpected developments as the United States begins to raise its interest rates,” says Cashin.