World Bank Highlights India's "Amazing" Economic Comeback Amid Covid, Predicts High GDP Growth

However, the situation is still incredibly challenging, both on the pandemic side with the flare up that is being experienced now. It is an enormous challenge to vaccinate everybody in India, the official said.

India's economy has bounced back remarkably from the COVID-19 pandemic and nationwide lockdown over the last one year, but it is not out of the woods yet, according to the World Bank, which in its latest report has predicted that the country's real GDP growth for fiscal year (FY21-22) could range from 7.5 to 12.5 per cent. The Washington-based global lender, in its latest South Asia Economic Focus report released ahead of the annual Spring meeting of the World Bank and the International Monetary Fund (IMF), said that the economy was already slowing when the COVID-19 pandemic unfolded. After reaching 8.3 per cent in FY17, growth decelerated to 4.0 per cent in FY20, it said. The slowdown was caused by a decline in private consumption growth and shocks to the financial sector (the collapse of a large non-bank finance institution), which compounded pre-existing weaknesses in investment, it said.