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World Bank and IMF forecast India’s GDP to grow highest in the world during 2021 and 2022

Not just these top monetary institutions, but even Moodys and Goldman Sachs suggested the same that Indian GDP will grow at a high rate of 12.5%. Although, lockdown in states could backfire.

Not just one but for the next two consecutive years, India’s GDP growth is expected to be the highest in the world as per World Bank and International Monetary Fund’s (IMF) World Economic Outlook which seems to be a good news for Indian Government.

Meanwhile the BJP government is also working to curb the growing prices of fuel although the price of vegetables and food products continue to remain unchanged and cancelled out negative affects of inflation if any.

But the economy problem could resume for the country and the people again as states like Maharashtra are starting to bring back partial lockdown and if the situation of Coronavirus continues the same, it would hit back at economic recovery which is yet not complete.

In its latest update, the IMF projected an 11.5 per cent growth rate for India 2021. This makes India the only major economy of the world to register a double-digit growth in 2021, it said.

While the same report has also predicted that the country’s real GDP growth for fiscal year (FY21-22) could range from 7.5 to 12.5 per cent.

Interestingly, both the forecasted growth rate is higher than the all countries, second being China at 8% this year.
The World Bank last week also upgraded its gross domestic product (GDP) forecast for the Indian economy to 10% within a band of 2.5 percentage points from 5.4% estimated in October last year.

UNESCAP has projected the Indian economy to grow at 7% in 2021, while Fitch Ratings upgraded India’s growth projection for FY22 to 12.8% on a stronger carry-over effect, a looser fiscal stance and better virus containment.

“Near-term prospects for Asia’s third-largest economy have turned more favourable and India’s gross domestic product (GDP) is projected to grow by 12% in 2021” said Moody’s Analytics. In an earlier estimate last November, it had said India’s GDP will grow at 9% in the calendar year.

The only problem and negative prospect all institutions are raising are about the Second Wave of COVID 19 which has struck India. Although hopefully, the vaccination drive could have a positive impact said the economists.

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