OECD estimate growth cut of India to 9.9%
Organisation for Economic Co-operation and Development (OECD) has cut India’s growth projection to 9.9 % for Financial Year 2022. In March, it estimated growth to 12.6%. Rate was cut witnessing covid cases lockdowns which have threatened to stall nascent economic recovery of India.
Key Points
- As per OECD, “pandemic can be contained quickly but GDP (gross domestic product) growth will still be about 10% in 2021-22 and 8% in 2022-23.
- Recovery is gaining momentum with increasing consumer demand, easy financial conditions and strong external market growth.
- World economy is experiencing diverging fortunes after last year’s pandemic. Advanced economies and emerging economies are recovering strongly while rest of world, including India, has fallen behind.
How second wave hit Indian Economy?
Second wave of covid-19 pandemic has hit India hard. Statewide lockdowns have stalled economic activity. Though, officially second wave is declining, the virus is spreading to hinterlands, which further pushing economic recovery to uncharted territory.
Projected Growth
It is projected that; India will be fastest-growing G20 economy in 2021. It will also move away furthest from its pre-crisis gross domestic product (GDP) trend. Demand for consumer durables and exports of manufacturing goods & services will also act in favour.
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Month: Current Affairs - June, 2021