The World Bank on Tuesday has slashed India's GDP forecast to 8.3 per cent for FY22, the fiscal year starting April 2021, as against its earlier estimate of 10.1 per cent.
It has further projected India's growth to be 7.5 per cent in 2022, even as its recovery is being hampered by an unprecedented second wave of the Covid-19, the largest outbreak in the world since the beginning of the deadly pandemic.
The Washington-based global lender, in its latest issue of Global Economic Prospects released here, noted that in India, an enormous second Covid-19 wave is undermining the sharper-than-expected rebound in activity seen during the second half of Fiscal Year 2020/21, especially in services.
"India's recovery is being hampered by the largest outbreak of any country since the beginning of the pandemic," the World Bank said.
In 2020, India's economy is estimated to have contracted by 7.3 per cent while in 2019, it registered a growth rate of four per cent, the World Bank said, adding that in 2023, India is expected to grow at 6.5 per cent.
In its report, the Bank said that the global economy is set to expand by 5.6 per cent in 2021 - its strongest post-recession pace in 80 years.
"For India, GDP in fiscal year 2021/22 starting from April 2021 is expected to expand 8.3 per cent," it said.