Mumbai: Credit rating agency Fitch has said that India's economic growth will accelerate to 7.3 percent in the current financial year and 7.5 percent in the next fiscal.

In its second-quarter Sovereign Credit Overview for Asia Pacific region, Fitch said the growth rate will accelerate as money supply has recovered to its pre-demonetisation level and disruptions related to the rollout of GST have diminished. It said India's ratings balance a strong medium-term growth outlook and favorable external balances against a weak fiscal position and difficult business environment.

But the country's business environment is likely to improve gradually with the implementation and continued broadening of the government's structural reform agenda, the rating agency said.