The World Bank on Tuesday has slashed India's GDP forecast to 8.3 percent for FY22, the fiscal year starting April 2021, as against its earlier estimate of 10.1 percent. It has further projected India's growth to be 7.5 percent in 2022, even as its recovery is being hampered by an unprecedented second wave of the Covid-19
The Washington-based global lender, in its latest issue of Global Economic Prospects released here, noted that in India, an enormous second COVID-19 wave is undermining the sharper-than-expected rebound in activity seen during the second half of Fiscal Year 2020/21, especially in services. "India's recovery is being hampered by the largest outbreak of any country since the beginning of the pandemic," the World Bank said.
In 2020, India's economy is estimated to have contracted by 7.3 percent while in 2019, it registered a growth rate of four percent, the World Bank said, adding that in 2023, India is expected to grow at 6.5 percent. In its report, the Bank said that the global economy is set to expand by 5.6 percent in 2021 - its strongest post-recession pace in 80 years. "For India, GDP in fiscal year 2021/22 starting from April 2021 is expected to expand 8.3 percent," it said. Activity will benefit from policy support, including higher spending on infrastructure, rural development, and health, and a stronger-than expected recovery in services and manufacturing, it said.