India's economy is picking up and growth prospects look bright-partly thanks to the implementation of recent policies, such as the nationwide goods and services tax. As one of the world's fastest-growing economies-accounting for about 15 percent of global growth-India's economy has helped to lift millions out of poverty.

But to sustain rapid growth and raise incomes for the country’s 1.3 billion people, India will need to build on the success of its reforms, the IMF said in its annual assessment of the Indian economy.