India expected to grow at 8.3%, says World Bank

The growth rate forecasted for India for 2021-22, the World Bank is an upward revision from its January forecast of 5.4%.

India’s economy is expected to grow at 8.3% for Fiscal Year 2021/22 as per the World Bank’s latest projections. This rate, however, masked the damage caused by the “enormous” second wave of COVID-19, the Bank said in its June 2021 Global Economic Prospects released on Tuesday. The world economy is expected to expand 5.6% , the fastest post-recession growth rate in eighty years, but global output will still be 2% below pre-pandemic projections by year-end. The growth rate forecasted for India for 2021-22, the World Bank is an upward revision from its January forecast of 5.4%. However this revision “masks significant expected economic damage from an enormous second COVID-19 wave and localized mobility restrictions since March 2021,” the report says, adding that activity will follow the same but less pronounced collapse and recovery seen in last year’s COVID wave. “Activity will benefit from policy support, including higher spending on infrastructure, rural development, and health, and a stronger-than[1]expected recovery in services and manufacturing,” the report says.