Indian Economy To Grow At 8.3% In 2021: World Bank

The World Bank has slashed its 2021-22 GDP growth forecast for the Indian economy to 8.3 per cent from 10.1 per cent estimated in April, saying economic recovery is being hampered by the devastating second wave of coronavirus infections. It projected a 7.5 per cent economic growth in the 2022-23 fiscal (April 2022 to March 2023).

The Washington-based global lender, in its latest issue of Global Economic Prospects released, said an enormous second COVID-19 wave in India 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. The projected growth compares to the worst ever contraction of 7.3 per cent witnessed in the fiscal year ended March 31, 2021 (FY21) and 4 per cent expansion in 2019-20.

In April this year, the World Bank had forecast a 10.1 per cent growth in Indian GDP for FY22. This was higher than 5.4 per cent it had projected in January. But now the projections have been slashed. The multilateral lending agency said India’s GDP is likely to grow by 6.5 per cent in 2023-24.