Estimated GDP growth of India for 2021-2022 to be at 8.3%
South Asia – A report by the World Bank projected India to have 8.3 percent GDP growth for the year 2021-2022. India has the largest economy in the South Asian countries and the report further established this ahead of the annual meeting scheduled to start next week.
The meeting will be held in Washington but before the focused report, the data showed that this growth is due to the increases in public investment. The government has also worked on promoting domestic schemes especially those linked to the manufacturing sector.
As per the statement of the bank, despite being heavily impacted by the second wave of Covid-19, one of the worst in the world, India managed to control the economic collapse and handle its affairs relatively better than last year. The growth will reportedly Steele around seven percent in the coming two years as the impact of the destruction slowly starts to fade away.
The bank further noted that the downside includes asset quality deterioration due to the pandemic. “Slow recovery in the informal sector and higher than expected inflation,” will also be impacting the economy in the projected structure.
In many of the South Asian countries, the second wave of Covid-19 was more destructive than the first one but despite that, the countries managed to handle the spread in a better way by targeted measures in their regions. In terms of the region, the South Asian region is set to grow at 7.1 percent in 2021 and 2022 and 5.4% in 2023.
Due to the ongoing pandemic, more than 100 million people have been pushed to poverty across the world and the data limited to the South Asian nations shows that this number is about 62-71 million in the region for 2020. However, for 2021, the number is slightly beers taking the total to 48-59 million.
As for the fiscal values, the accommodative fiscal values and other monetary policies are the major reason why it was easier to mitigate during the pandemic. Low-interest rates are another cause for a better recovery cuve post the pandemic.
There is still a desperate need to make efforts for vaccinations and garnet relief measures to many of the vulnerable communities but the polities are definitely in sight for recovery, stressed the World Bank. Talking about the growth pattern in South Asia, World Bank Chief Economist Hans Timmer said, “If you don’t start now preparing for what we call the ‘new normal’, and there’s always a new normal after a major crisis, you might well be too late.”