India to grow at 8.3% in current year: World Bank

Washington, June 8

The World Bank on Tuesday projected India’s economy to grow at 8.3% in 2021 and 7.5% in 2022, even as its recovery is being hampered by an unprecedented second wave of the Covid, the largest outbreak in the world since the beginning of the deadly pandemic.

The Washington-based global lender, in its latest issue of Global Economic Prospects released here, noted that in India, an enormous second Covid 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.

New Projections

In 2020, India’s economy is estimated to have contracted by 7.3% while in 2019, it registered a growth rate of 4%, the World Bank said, adding that in 2023, India is expected to grow at 6.5%

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

In 2020, India’s economy is estimated to have contracted by 7.3% while in 2019, it registered a growth rate of 4%, the World Bank said, adding that in 2023, India is expected to grow at 6.5%.

In its report, the Bank said the global economy is set to expand by 5.6% 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%,” it said. — PTI