India Ratings in its report has revealed that India's economy is gradually coming back to normalcy after facing twin shocks of demonetization and GST which temporarily damaged the growth.

It alerted the possible widening of the current account deficit (CAD) in the backdrop of the rising oil prices which is putting pressure on the currency.

Chief Economist of India Ratings, Mr. Devendra Pant said that "Our research has shown that major macro parameters like manufacturing, capital goods production, non-food credit, and consumption are showing signs of recovery".

He further added that on the monetary side, areas of concern include rising bond yields which indicate potential slippages on the fiscal front.

"Things are improving now. If things behave as they are now and the policy remains conducive, growth in current fiscal is expected to be 7.4 percent", Pant said.

He added that it was unlikely that the central government will go ahead with the big bang reforms as the Lok Sabha Elections for 2019 is around the corner.