The World Bank has raised the country’s growth forecast to 10.1 per cent for the next financial year 2021-22, compared to the earlier estimate of 5.4 per cent. The country’s real gross domestic product (GDP) growth could range between 7.5 per cent-12.5 per cent. The World Bank stated in its recent report ‘South Asia Economic Focus’ that the Indian economy had been slowing prior to the COVID-19 pandemic and that the spread of the coronavirus infection, leading to lockdown measures severely disrupted supply and demand conditions.
The Monetary policy was deployed aggressively and the fiscal resources have been channeled to public health and social protection, but additional countercyclical measures will be needed, within a revised medium-term fiscal framework, according to World Bnak. Despite the measures to shield vulnerable households and firms, the trajectory of poverty reduction has slowed, if not reversed.