India will grow at 7.3 percent this year and 7.4 percent in 2019, the International Monetary Fund has predicted.

"India's growth is expected to increase to 7.3 percent in 2018 and to 7.4 percent in 2019 ... up from 6.7 percent in 2017," the IMF said in its World Economic Outlook report that was released Tuesday.

This growth rate "reflected a rebound from transitory shocks (the cash ban and implementation of the national Goods and Services Tax), with strengthening investment and robust private consumption," the IMF said.

Indian Prime Minister Narendra Modi banned high value currency notes, in a sudden televised address on Nov. 8, 2016, in an attempt to end the black money menace in this country and prevent circulation of fake notes in the hands of terrorists.

Goods and Services Tax, on the other hand, is an uniform tax structure imposed by India last year. The tax replaced existing multiple cascading taxes levied by the central and state governments.