World Bank forecasts 8.3% growth for India based on improvements in manufacturing, farm and mining sector
New Delhi, 14 Jan (KNN) For the current fiscal year, the World Bank has retained India’s economic growth forecast at 8.3 per cent.
The economy is projected to grow at 9.2 per cent in 2021-22, surpassing pre-COVID level in actual terms, mainly on account of improved performance, especially in farm, mining and manufacturing sectors, as per the first advanced estimates of the national income released by the National Statistical Office (NSO) last week.
The World Bank reported this in its Global Economic Prospects report, and said that the economy should benefit from the resumption of contact-intensive services, and ongoing but narrowing monetary and fiscal policy support.
While the growth forecast has been upgraded for 2022-23 and 2023-24 to 8.7 per cent and 6.8 per cent, the report said.
The upward revision reflects an improving investment outlook with private investment, particularly manufacturing, benefiting from the Production-Linked Incentive (PLI) Scheme, and increases in infrastructure investment.
In India, the economic damage caused by the second wave has already been unwound with output effectively back to levels reached prior to the pandemic (2019 Q4) as COVID cases and restrictions subsided, it added.