The World Bank has revised the country’s growth forecast for the current fiscal year 2021-22 to 8.3 per cent, as against the earlier estimate of 10.1 per cent. The World Bank in its latest report has said that the Indian economy – South Asia’s largest, will register increased public investment and increased incentives to boost manufacturing. (Read also: World Bank 2021-22. India’s growth rate has been increased from 5.4% to 10.1% for )
Due to the second wave of the COVID-19 pandemic in India, the economic recovery stalled and high-frequency data suggested that the recovery also declined for a brief period, according to Hans Timmer, the World Bank’s chief economist for the South Asia region.
Earlier this year, the World Bank said India’s real gross domestic product (GDP) growth for the current fiscal ranged from 7.5 to 12.5 per cent in the South Asia Economic Focus report released ahead of the World Bank’s annual spring meeting. can. International Monetary Fund (IMF).
The World Bank, in its report released on March 31, said that the Indian economy was slowing down before the COVID-19 pandemic. After reaching 8.3 per cent in the financial year 2016-17, economic growth fell to four per cent in the financial year. Year 2019-20. According to the World Bank, the slowdown was caused by a decline in private consumption growth and subsequent shocks to the financial sector.
Meanwhile, the Reserve Bank of India (RBI)-led Monetary Policy Committee, in its fourth bi-monthly policy review for the current financial year yesterday, retained GDP growth for the financial year 2021-22 at 9.5 per cent.
The central bank also lowered inflation forecast to 5.3 per cent as it assessed the economy at a time when activity was steadily increasing in line with calculated progress in the vaccination campaign. As of now, a quarter of India’s adult population is being fully vaccinated and about 71 percent are being partially vaccinated, according to government data.