The World Bank has revised and slashed its 2021-22 economy growth forecast for the Indian Gross Domestic Product (GDP) to 8.3 percent. While, in April 2021, it had forecast a 10.1 percent growth in Indian GDP for FY 22, which was higher than 5.4 percent as projected in January, 2021.
“India’s recovery is being hampered by the largest outbreak of any country since the beginning of the pandemic,” the World Bank said. Further, in its report, the bank said that the global economy is set to expand by 5.6 per cent in 2021, its strongest post-recession pace in 80 years.
“In India, fiscal policy shifted in the FY 2021/22 budget toward higher expenditure targeted at healthcare and infrastructure to boost the post-pandemic recovery. The renewed outbreak, however, may require further targeted policy support to address the health and economic costs,” it added.
However, it has projected India’s GDP growth at 7.5 percent for 2022-23 fiscal and 6.5 percent in 2023-24.