New Delhi: The World Bank has said that India would be the second-fastest-growing major economy, behind only China.
The Bank's Global Economic Prospects Report released on Tuesday said braving the aftermath of second wave of Covid19 pandemic the Indian economy would grow by 8.3 per cent during the current fiscal. This would be an increase of nearly 3 per cent from its January projection,.
India's growth would be just behind China which is forecast to grow by 8.5 per cent.
It has, however, slashed India's 2021-22 GDP growth forecast to 8.3 percent from 10.1 percent as estimated in April. It stated that the economic recovery is being hampered by the devastating second wave of coronavirus infections.
It may be mentioned here that despite a challenging start to the year, China was the only major economy to register growth in 2020 though it was weakest in decades at 2.3 per cent.
The report said that India's growth forecast is "supported by plans for higher spending on infrastructure, rural development, and health, and a stronger-than-expected recovery in services."
It also moderated the shrinkage in India's economy to 7.3 percent in the last fiscal year, less than the 9.6 per cent projected in January.
The report said that reflecting the "rebounds in some major economies," the global growth in 2021at 5.6 per cent "is expected to reach its strongest post-recession pace in 80 years". .
The Bank projected the global growth to slow down to 4.3 next year and to 3.1in 2023 as the effect of the rebound from the shrinkage "The pandemic will undermine consumption and investment as confidence remains depressed and balance sheets damaged. Growth in FY 2022/23 is expected to slow to 7.5 per cent, reflecting lingering impacts of COVID-19 on household, corporate and bank balance sheets; possibly low levels of consumer confidence; and heightened uncertainty on job and income prospects," said the Washington based global lender.
Finance minister Nirmala Sitharaman has last week urged various ministries to “front-load” their capital expenditure to stimulate growth.
She also said that the ministries need to explore the PPP mode for viable projects.
She also asked various ministries and departments to ensure swift clearance of dues of MSMEs to help them boost investments.
"This once-in-a-lifetime pandemic has brought tragedy and suffering at the doorstep of many. The pandemic has impacted every nation. The economic impact is huge as well. Our planet will not be the same after covid-19. In the times to come, we will certainly remember events as either pre-covid or post-covid," Prime Minister Narendra Modi said last month at a function organised to celebrate Buddha Jayanti.