OECD has cut India’s growth projection to 9.9 per cent for FY 2022. In March, it estimated growth to 12.6 per cent. Rate was cut witnessing covid cases lockdowns which have threatened to stall nascent economic recovery of India.
- As per Organisation for Economic Co-operation and Development, “pandemic can be contained quickly but GDP (gross domestic product) growth will still be about 10 per cent in 2021-22 and 8 per cent in 2022-23.
- Recovery is gaining momentum with increasing consumer demand, easy financial conditions and strong external market growth.
- The 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 the 2nd wave hit Indian Economy?
The 2nd wave of covid-19 has hit India hard. Statewide lockdowns have stalled economic activity. Though, officially 2nd wave is declining, the virus is spreading to hinterlands, which further pushing economic recovery to uncharted territory.
It is projected that; India will be fastest-growing G20 economy in 2021. It will also move away furthest from its pre-crisis GDP trend. Demand for consumer durables and exports of manufacturing goods & services will also act in favour.
OECD estimates growth cut of India to 9.9% OECD estimates growth cut of India to 9.9%