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World Bank pegs India’s economic growth at 8.3% for 2021-22, sees global growth slowing to 4.1%

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According to the World's Bank's "Global Economic Prospects", India's economic growth is expected to be 8.3 per cent in the current financial year and 8.7 per cent in 2022-23

India's economic growth is expected to be 8.3 per cent in the current financial year and 8.7 per cent in 2022-23, according to the World Bank's "Global Economic Prospects" report, released on Tuesday.

The World Bank has maintained its forecast for India’s growth rate at the same level as it had projected in October 2021 even as it expects the global economic growth to slow down sharply. 

The World Bank report said, global economic growth will "decelerate markedly" this year as coronavirus outbreaks and supply chain snarls persist. At the same time, the support programmes unveiled by several governments are about to end.

The report said that global growth will slow down to 4.1 percent this year from an estimated 5.5 percent in 2021, but warned "Omicron-related economic disruptions could substantially reduce growth" to as low as 3.4 percent.

The report also said that the Indian economy's growth rate in the current as well as the next fiscal will be stronger compared to its immediate geographic neighbours.

Bangladesh is expected to grow at 6.4 and 6.9 percent in 2021-22 and 2022-23, respectively, while Nepal's growth is expected to be at 3.9 percent this fiscal and at 4.7 percent in the next financial year. Pakistan's economy will grow by 3.4 percent in the current fiscal and at 4 per cent in 2022-23, the report said.

Incidentally as per the first advance estimate released by the ministry of statistics and programme implementation on January 8, India's GDP growth is likely to be 9.2 per cent in the current fiscal.

The projection is lower than the forecast by the Reserve Bank of India (RBI), which had in December said that the GDP growth rate is likely to be 9.5 percent for the current fiscal.

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