The Asian Development Bank (ADB) in its recent projection has pegged India’s growth rate at 10 per cent for the current financial year, down from the earlier forecast of 11 per cent. According to the new assessment, India is expected to clock a growth rate of 7.5 per cent in 2022.
The multilateral agency said that though recovery is underway in developing Asia, growth projection is revised down slightly from 7.3 per cent in April to 7.2 per cent for 2021 following renewed virus outbreaks in some economies.
In South Asia, new waves of infections prompt a lower growth forecast of 8.9 per cent for 2021, followed by growth at 7.0 per cent in 2022, ADB said.
Experts said that India must keep its focus on averting a third wave of the pandemic. “The pace of vaccination is very critical. Growth would depend on how well we handle the Covid 19 situation,” DK Srivastava, chief policy adviser, EY India told India Narrative.
Meanwhile, the World Bank earlier in a blog said that as the global economic growth is likely to expand by 5.6 per cent this year, several countries have started looking at an alternative supply chain network in the post Covid phase.
It also said that growth in advanced economies is expected to reach 5.4 per cent—the highest rate in nearly 50 years—driven by rapid vaccination and unprecedented fiscal and monetary policy support since the beginning of the pandemic.
The global economic revival is expected to push the economies of several countries including India.
Finance Minister Nirmala Sitharaman has also announced a massive Rs 6.29 lakh crore stimulus package with the aim to revive the economy and help the country fight against the deadly pandemic.
“This year is likely to mark the strongest post-recession rebound in 80 years,” the World Bank blog said. However, it added that the poorest countries will continue to suffer and recovery may take longer for them.