India’s growth in FY22 ending March 31, 2022, is expected to be in the range of 7.5-12.5pc; most likely to be at 10.1pc. The recent projections peg the growth higher than the January forecast of 5.4pc, according to the World Bank’s March update of the South Asia Economic focus report. The apex bank believes the inoculation drives launched by the country could aid in the recovery of activity in contact-intensive sectors. Public spending announced in the union budget in February will also revive domestic demand and lend momentum to the growth pace.
The report also estimates India’s GDP contraction in FY 2021 to be lower at a negative 8.5pc from the previous forecast of a negative 9.6pc. The revision comes in the wake of accelerated in June-Dec period as private consumption and investment rebound.
For South Asia, the projected growth for the calendar year 2021 is 7.2pc; while in 2022, it is estimated at 4.4pc. India, the largest economy in the region accounts for 80pc of the region’s GDP.
In early March, a report by the World Bank states Pakistan’s economic growth in 2021-22 below potential at around 1.3pc. Locust attacks and heavy monsoons could impact the growth, the global apex bank noted.