The world bank has scaled up its projections for India’s economic growth by a massive 4.7% points to 10.1% for 2021-22 due to strong rebound in private consumption and investment growth. The bank had pegged the GDP growth at 5.4% for the country in its January report.
India, which comprises almost 80% of the region’s (South Asia) GDP, had a substantial revision to growth of 4.7% points since January 2021, Due to a strong rebound in private consumption and investment growth in the second and third quarters of FY21, The Bank said in a report, titled South Asia Economic Focus Spring 2021- South Asia Vaccinates.
Considering the uncertainty caused by Covid cases in 2021-22 the Bank also gave a range of economic growth for India, at 7.5% to 12.5 percent, for FY22. At the higher end, the World Bank’s projection compared well with IMF which predicated GDP growth rate to be 11.5% during FY22 and Economic survey which forecast it at 11%
The multilateral agency also forecast the economy to decline by 8.5 percent in FY21, higher than eight percent projected by the National Statistical office, Hans Timmer, World Bank Chief Economist for the South Asia Region, told PTI that even with the rebound and there is uncertainty here about the numbers, But it basically means that over two years there was no growth in India and there might well have been over two years, a decline in per capita income.
By Priyanshu Kashyap