TIL Desk/Business/New Delhi/ The World Bank has retained India’s economic growth forecast for the current fiscal at 8.3 per cent as the recovery is yet to become broad-based. As per the first advanced estimates of the national income released by the National Statistical Office (NSO) last week, the economy is projected to grow at 9.2 per cent in 2021-22, surpassing pre-COVID level in actual terms, mainly on account of improved performance, especially in farm, mining and manufacturing sectors.
“India’s economy is expected to expand by 8.3 per cent in fiscal year 2021/22 (ending March 2022), unchanged from last June’s forecast as the recovery is yet to become broad-based. “The economy should benefit from the resumption of contact-intensive services, and ongoing but narrowing monetary and fiscal policy support,” the World Bank said in its latest Global Economic Prospects report released on Tuesday. Further, the report said that growth forecast has been upgraded for 2022-23 and 2023-24 to 8.7 per cent and 6.8 per cent, respectively.
The upward revision reflects an improving investment outlook with private investment, particularly manufacturing, benefiting from the Production-Linked Incentive (PLI) Scheme, and increases in infrastructure investment. “The growth outlook will also be supported by ongoing structural reforms, a better than-expected financial sector recovery, and measures to resolve financial sector challenges despite ongoing risks,” the report said.
