New Delhi: The World Bank on Monday projected a 7.2 per cent growth rate for India in 2017-18 due to the impact of demonetisation and protracted investment recovery.

In its bi-annual economic India Development Update, the World Bank said the growth will accelerate to 7.2 per cent from 6.8 per cent in 2016-17.

"Economic activity ought to accelerate in FY18. GDP is projected to grow at 7.2 per cent from 6.8 per cent in FY17," it said in a report released here.

India's growth would increase gradually to 7.7 per cent by 2019-20, the report added.