The World Bank in its latest Global Economic Prospects said the economic damage brought about by the second COVID wave has already been unwound and the output effectively returning to pre-pandemic levels.
India’s GDP Growth Forecast: The World Bank in its latest report on Tuesday projected India’s growth forecast at 8.3% for FY22 and upgraded it to 8.7% for FY23 from 7.5% estimated earlier citing improving growth prospects.
“India’s economy is expected to grow by 8.3 per cent in the fiscal year ending March 2022, unchanged from the June 2021 outlook. The forecast for FY2022/23 and FY2023/24 for India has been upgraded to 8.7 per cent and 6.8 per cent, respectively, reflecting higher investment from the private sector and in infrastructure, and dividends from ongoing reforms,” the World Bank said in its latest Global Economic Prospects.
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Giving details, the World Bank further said the economic damage brought about by the second wave in India has already been unwound and the output effectively returning to pre-pandemic levels. “Contact-intensive sectors, like trade and hotels, however, are still below pre-pandemic levels,” it added.
Notably, the development comes just a few days after the National Statistical Office (NSO) projected Indian economy to grow at 9.2 per cent in the 2021-22 fiscal, surpassing pre-Covid level in actual terms mainly on account of improved performance especially in farm, mining and manufacturing sectors.
The improvement in the economy comes over a GDP contraction of 7.3 per cent during 2020-21 due to the pandemic and resultant lockdown imposed to curb the spread of the deadly coronavirus.
As per the first advanced estimates of the national income released by the National Statistical Office (NSO) on Friday, a growth is witnessed across sectors.
“Real GDP or GDP (gross domestic product) at Constant Prices (2011-12) in the year 2021-22 is estimated at Rs 147.54 lakh crore, as against the Provisional Estimate of GDP for the year 2020-21 of Rs 135.13 lakh crore, released on May 31, 2021. The growth in real GDP during 2021-22 is estimated at 9.2 per cent as compared to the contraction of 7.3 per cent in 2020-21,” as per the NSO statement.
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As per the estimates, GDP in actual terms in 2021-22 will surpass the pre-Covid level of Rs 145.69 lakh crore in 2019-20.
The pandemic hit the country in March 2020, resulting in a nationwide lockdown from March 25, 2020, which severely dented the economic growth in the 2020-21 fiscal. The economy contracted by 7.3 per cent in 2020-21.
The NSO estimates are a tad lower than 9.5 per cent GDP growth projection of the Reserve Bank of India.
