World Bank projects India's economy to grow at 8.3 per cent in 2021. This projection, however, masks significant expected economic damage from the second COVID-19 wave and localised mobility restrictions in the country, stated the report.
In addition, the World Bank forecasts India's economy to grow by 7.5 per cent in 2021.
The World Bank in its June 2021 Global Economic Prospects, said, "For India, GDP in fiscal year 2021/22, starting April 2021, is expected to expand 8.3 per cent."
It stated the activity will benefit from policy support, including higher spending on infrastructure, rural development, and health, and a stronger-than expected recovery in services and manufacturing.
The reported stated, "Although the forecast has been revised up by 2.9 percentage points, this masks significant expected economic damage from an enormous second COVID-19 wave and localized mobility restrictions since March 2021."
In South Asia, India’s recovery is being hampered "by the largest outbreak of any country since the beginning of the pandemic".
The report stated that many emerging market and developing economies continue to struggle with the COVID-19 pandemic and its aftermath.
The situation is particularly serious in India, where the number of daily deaths and cases is now higher than in any other country during the pandemic. For the region as a whole, peaks in daily new confirmed cases and deaths in 2021 are multiple times higher than last year. Although nearly all countries in the region have begun vaccinations, progress has been slow, and the region’s largest economies.
Meanwhile, the global economy is expected to expand 5.6 per cent in 2021, the fastest post-recession pace in 80 years, largely on strong rebounds from a few major economies.