The World Bank on Tuesday slashed India’s GDP (Gross Domestic Product) growth rate forecast for the fiscal year 2021-22 to 8.3 percent from 10.1 percent earlier. It has said that the most dangerous second wave of the Covid-19 epidemic has hurt economic revival. The lending multilateral institution has projected the economic growth rate to be 7.5 percent in 2022-23.
The World Bank, in a new edition of the report titled Global Economic Prospects, has said that India was witnessing a rapid revival in the second half of 2020-21, especially in the services sector, but the second wave of the Covid-19 pandemic affected it. have been adversely affected.
According to the institute, ‘India had the most severe wave of any country since the beginning of the epidemic and this adversely affected the economic revival.’ While there was an increase of 4 percent in 2019-20.
According to the report, policy support, including higher expenditure on infrastructure, rural development and health, and a higher-than-expected revival in services and manufacturing will accelerate activities. In the estimates for the financial year 2021-22, the damage to the economy due to the second wave of Covid-19 and the restrictions imposed from March 2021 for its prevention has been taken into account.
“The pandemic will have an adverse impact on consumption and investment as confidence is already weak and books have been adversely affected,” the report said. The growth rate is expected to slow down to 7.5 percent in the financial year 2022-23. This reflects the cascading impact of COVID-19 on households, companies and banks’ books, weakening customer confidence and uncertainty in employment and income.
News Source: Scroll.in
