Maintaining this positive trend will require strengthening the economy's resilience with greater exchange rate flexibility, fiscal discipline, and an adequately tight monetary policy stance, the IMF said.
Murray said the demonetisation did cause some temporary disruptions in economic activity, primarily, private consumption and small businesses due to cash shortages.
The IMF approved the USD 1.5 billion loan in June 2016 following a balance of payments crisis in Sri Lanka.
The two-year flexible credit line boosts Mexico's ability to immediately deal with a potential need for liquidity, without having to request an IMF loan.
Recently, the US-based Moody's upgraded India's sovereign rating after a gap of 13 years to Baa2, with 'stable' outlook, from Baa3 earlier, citing improved growth prospects driven by economic and institutional reforms.
The Article 4 mission, a yearly assessment that the Fund conducts of each of its member states' economies, begins on Monday, an IMF spokeswoman said.
Studies show that Asia's population is ageing faster than anywhere else in the world, with Japan forecast to become the first "ultra-aged" country, meaning 28 per cent of the population is 65 or over, while a fifth of the people in South Korea are expected to be 65 by 2030.
The IMF issued its annual review of China on Tuesday, and has revised its growth forecast to 6.7 percent for 2017, which was up from 6.2 percent. The organization also said it expects China to average 6.4 percent growth between now and 2021, versus its previous estimate of 6 percent.
The International Monetary Fund highlighted concerns over price movements and public debt as it noted the mixed record of Prime Minister Shinzo Abe's growth plan dubbed Abenomics.
The IMF last month announced it would revive the seldom- used option of approving a loan "in principle," in order to convince eurozone finance ministers to release desperately- needed new funds to Greece.
"There may, one day, be another crisis," Lagarde told CNBC Tuesday on the sidelines of a joint conference with the IMF and the Croatian National Bank in Dubrovnik.
Ahead of the G20 leaders summit this weekend in Hamburg, IMF Managing Director Christine Lagarde said the mood is upbeat given the now one-year-old recovery.
The ambitious Goods and Services Tax (GST) to be implemented from July 1 would help raise India's medium-term growth to above eight per cent, the International Monetary Fund has said adding that the reforms being done is expected to pay off in terms of higher growth in the future.
Jaitley, who holds the additional charge of the Defence Ministry, said the Union Government has made the initial policy changes while some more are being planned.
Rising corporate debt continues to be a risk to the growth. The report says while emerging markets (EMs) are now better equipped to handle headwinds, rising corporate debt poses a threat.
The latest World Economic Report, she noted, has forecasted growth in 2017 at 3.5 per cent and in 2018 at 3.6 percent.
Lagarde, speaking ahead of next week's IMF and World Bank spring meetings in Washington, argued for countries to strengthen the post-war open trade architecture by cooperating multilaterally to solve trade issues such as reducing excessive external imbalances.
India fared poorly in terms of regional disparity of per capita income among the BRICS nations.
"The IMF board took the decision to grant Ukraine one billion dollars," wrote Petro Porochenko on his Facebook page, seeing it as "another sign of the reforms under way in Ukraine."
Lagarde said in a speech in Washington that the private sector alone will not be able to generate enough innovation to lift productivity to acceptable levels without government help.
According to a Finance Ministry report, per capita debt (calaculated on basis of Union Government debt) is at Rs 53,796 as on March 31, 2016, as against Rs 49,270 on March 31, 2015.
IMF chief Christine Lagarde condemned the explosion as a cowardly act of violence. "I ... reaffirm the IMF's resolve to continue our work in line with our mandate. We are working closely with the French authorities to investigate this incident and ensure the safety of our staff," she said.
Cooperation between countries that have current account deficits and those that have surpluses is required to address such imbalances, he told an IMF-hosted seminar in Tokyo on the international monetary system in Asia.
In his lengthy work report submitted to China's parliament, the National People's Congress (NPC) yesterday, Chinese Premier Li Keqiang said "the renminbi exchange rate will be further liberalised, and the currency's stable position in the global monetary system will be maintained".
In one of his addresses, Prime Minister Narendra Modi spoke on the timing of demonetisation, saying that you treat a patient when he is healthy and not when he is weak. His assessment of the economy being healthy at the time of demonetisation seems to be correct if the latest GDP numbers are to be believed.