The World Bank in its latest global economic prospects report, expects Indian economy to grow 8. 3% in the fiscal year ending March 2022, unchanged from the June 2021 outlook. The forecast for FY23 and FY24 for India has been upgraded to 8. 7% and 6. 8%, respectively, reflecting higher investment from the private sector and in infrastructure, and dividends from ongoing reforms.
The government estimates the economy to grow by 9. 2% in the fiscal year ending March, a shade below the RBI’s estimate of 9.5%. The IMF has also projected a 9.5% growth for India. The IMF will release its new growth estimates on January 25. Following a strong rebound in 2021, the global economy is entering a pronounced slowdown amid fresh threats from Covid-19 variants and a rise in inflation, debt, and income inequality that could endanger the recovery in emerging and developing economies, according to the World Bank report.
Global growth is expected to decelerate markedly from 5.5% in 2021 to 4.1% in 2022 and 3.2% in 2023 as pent up demand dissipates and as fiscal and monetary support is unwound across the world.