India grew at the fastest pace of any major economy in the July-September quarter but economists said disruptions from the emerging Omicron coronavirus variant risked slowing the recovery, especially given India`s low vaccination rates.

Asia`s third-largest economy has rebounded strongly from last year`s deep pandemic-induced slump, boosted by vaccinations and stronger government spending, economists said. But new COVID-19 variants, a global slowdown and rising manufacturing prices all pose risks to growth.

Gross domestic product expanded 8.4% in the September quarter from a year earlier, statistics ministry data showed on Tuesday, in line with 8.4% growth predicted in a Reuters poll and compared with a 20.1% expansion in the previous quarter.

"Data clearly shows that corporate income and profit are above the pre-pandemic level," K.V. Subramanian, chief economist at the finance ministry told reporters after the data release.

He said double-digit growth was expected in the current fiscal year, which ends in April 2022, with growth of 6.5% to 7% predicted for the following fiscal year.

The International Monetary Fund has forecast 2021 economic growth of 9.5% in India compared to a forecast for China of 8%.

The Reserve Bank of India`s (RBI) monetary policy committee meets on Dec. 6-8. With households increasingly worried about inflation, policymakers are expected to speed up measures to suck up excess liquidity before normalising interest rates.

"With growth revival and sticky core inflation, we expect RBI to undertake phased withdrawal of liquidity and start raising the policy rates soon," said Sujan Hajra, chief economist at Anand Rathi Securities, Mumbai.

Consumer spending - the main driver of the economy - rose 8.6% from a year earlier in July-September following 19.3% growth in previous quarter, Tuesday`s data showed.

Manufacturing expanded 5.5% and farm output rose 4.5% during the three months to September, which bolstered the recovery as lower interest rates lifted consumer spending and investments.

Investments rose 11% compared with growth of 55.3% in the previous quarter, while state spending jumped 8.7% after contracting nearly 5% in the April-June period.

<h2>Risks to growth&nbsp;</h2>

Modi has rolled back three farm laws aimed at cutting subsidies and attracting investments while putting planned labour reforms on hold as his party faces growing criticism over rising distress among workers during the pandemic.

Rising prices and falling rural wages risk denting consumer demand, analysts say. Real rural wages have contracted 3% so far in the current fiscal year, according to estimates, leading to declines in two-wheeler and tractor sales.

Supply bottlenecks including chip shortages have also hit production of vehicles and other electronic goods.

The emergence of the Omicron coronavirus variant has led health authorities to tighten testing at Indian airports while Prime Minister Narendra Modi has ordered a review of plans to ease travel curbs.

Private economists said the new COVID-19 variant could dampen hopes of recovery in tourism and other services, as only around 32% of the population has been fully vaccinated.

"We need to watch out for any risks from the Omicron COVID variant and any escalation in supply disruptions due to stricter lockdowns across the globe," said Sakshi Gupta, senior economist at HDFC Bank.

India grew at the fastest pace of any major economy in the July-September quarter but economists said disruptions from the emerging Omicron coronavirus variant risked slowing the recovery, especially given India`s low vaccination rates.

India grew at the fastest pace of any major economy in the July-September quarter but economists said disruptions from the emerging Omicron coronavirus variant risked slowing the recovery, especially given India`s low vaccination rates. Asia`s third-largest economy has rebounded strongly from last year`s deep pandemic-induced slump, boosted by vaccinations and stronger government spending, economists said. But new COVID-19 variants, a global slowdown and rising manufacturing prices all pose risks to growth. Gross domestic product expanded 8.4% in the September quarter from a year earlier, statistics ministry data showed on Tuesday, in line with 8.4% growth predicted in a Reuters poll and compared with a 20.1% expansion in the previous quarter. "Data clearly shows that corporate income and profit are above the pre-pandemic level," K.V. Subramanian, chief economist at the finance ministry told reporters after the data release. He said double-digit growth was expected in the current fiscal year, which ends in April 2022, with growth of 6.5% to 7% predicted for the following fiscal year. The International Monetary Fund has forecast 2021 economic growth of 9.5% in India compared to a forecast for China of 8%. The Reserve Bank of India`s (RBI) monetary policy committee meets on Dec. 6-8. With households increasingly worried about inflation, policymakers are expected to speed up measures to suck up excess liquidity before normalising interest rates. "With growth revival and sticky core inflation, we expect RBI to undertake phased withdrawal of liquidity and start raising the policy rates soon," said Sujan Hajra, chief economist at Anand Rathi Securities, Mumbai. Consumer spending - the main driver of the economy - rose 8.6% from a year earlier in July-September following 19.3% growth in previous quarter, Tuesday`s data showed. Manufacturing expanded 5.5% and farm output rose 4.5% during the three months to September, which bolstered the recovery as lower interest rates lifted consumer spending and investments. Investments rose 11% compared with growth of 55.3% in the previous quarter, while state spending jumped 8.7% after contracting nearly 5% in the April-June period. Risks to growth Modi has rolled back three farm laws aimed at cutting subsidies and attracting investments while putting planned labour reforms on hold as his party faces growing criticism over rising distress among workers during the pandemic. Rising prices and falling rural wages risk denting consumer demand, analysts say. Real rural wages have contracted 3% so far in the current fiscal year, according to estimates, leading to declines in two-wheeler and tractor sales. Supply bottlenecks including chip shortages have also hit production of vehicles and other electronic goods. The emergence of the Omicron coronavirus variant has led health authorities to tighten testing at Indian airports while Prime Minister Narendra Modi has ordered a review of plans to ease travel curbs. Private economists said the new COVID-19 variant could dampen hopes of recovery in tourism and other services, as only around 32% of the population has been fully vaccinated. "We need to watch out for any risks from the Omicron COVID variant and any escalation in supply disruptions due to stricter lockdowns across the globe," said Sakshi Gupta, senior economist at HDFC Bank.

India grows fastest among major economies, GDP expands 8.4 per cent in second quarter

India has not only faced the COVID-19 crisis with great resilience and fortitude but has also played a major role and "walked the talk" on the global fight against it, Union Finance Minister Nirmala Sitharaman has said.

Pointing out the fast recovery of India's economy, Sitharaman in her address to the Development Committee of the World Bank said the Modi Government, besides taking economic relief measures, has also undertaken significant structural reforms to turn the crisis into an opportunity and emerge stronger.

Also Read |&nbsp;<a href="https://www.wionews.com/business-economy/indian-economy-to-grow-at-95-per-cent-in-2021-imf-420211">Indian economy to grow at 9.5 per cent in 2021: IMF</a>

The measures undertaken by the government have set a strong foundation for India's sustained economic growth,&nbsp;she said.

According to the International Monetary Fund's World Economic Outlook, India is estimated to be the fastest-growing major economy in 2021, projected to grow at 9.5 per cent in 2021 and 8.5 per cent in 2022.

Observing that despite the pandemic, India received its highest ever FDI inflows of USD82.0 billion in fiscal 2020-21, the finance minister said this trend in India's FDI is an endorsement of its status as a preferred investment destination amongst global investors.

Addressing the Development Committee meeting, Sitharaman said India has faced the COVID-19 crisis with great resilience and fortitude.

The country's pandemic response has focused on the twin goals of saving both the lives and livelihoods, she said.

When faced with the second wave of infections, India again mounted a carefully calibrated and dynamic response to the evolving situation. Given that the second wave was asynchronous in its onset across states and wider in its spread, only localised lockdowns were imposed during the second wave,&nbsp;she said.

Also Read |&nbsp;<a href="https://www.wionews.com/business-economy/imf-cuts-chinas-growth-forecast-amid-disorderly-corporate-debt-defaults-420197">IMF cuts China's growth forecast amid 'disorderly corporate debt defaults'</a>

This approach aided reduction in cases in the COVID-19 hotspots without dampening economic activity in regions with fewer cases, she said.

Despite a more brutal second wave, India's GDP grew at 20.1 per cent YoY during April-June quarter of 2021, recovering more than 90 per cent of the corresponding pre-pandemic output levels of 2019,&nbsp;she added.

The broad-based and swift recovery of both the demand and supply-side components reaffirms India's resilient recovery and strong macroeconomic fundamentals.

With the easing of the COVID-19 restrictions, GST collections for July, August and September 2021 have crossed the INR 1 trillion mark, which testifies to the fact that the economy is recovering at a fast pace. The robust GST revenues are expected to continue in the coming months too as the economic recovery gathers momentum,&nbsp;the finance minister said.

India, she said, is one of the frontrunners in the global vaccine deployment race with the second-highest total number of COVID-19 vaccines administered all over the world. 
As of September 30, India has administered 951.35 million doses, covering 72.8 per cent of the 18 years (as on August 10, 2021) and above population with at least one dose of COVID-19 vaccine.

India has also played a major role and truly walked the talk' on the global COVID-19 effort. India's massive Vaccine Maitri programme, under which more than 66.3 million doses of COVID-19 vaccines were exported to 95 countries worldwide bears special mention. India is all set to resume vaccine export in October 2021&nbsp;she said.

Also Read |<a href="https://www.wionews.com/india-news/high-vaccination-rate-will-aid-indias-economic-recovery-gita-gopinath-420597">&nbsp;High vaccination rate will aid India's economic recovery: Gita Gopinath</a>

India also made its digital platform for COVID-19 vaccination, CoWIN, an open-source for all countries to access, adapt and use. India is also at the forefront of multilateral efforts, including the Quad plan for the production of one billion vaccines to be offered to South-East Asian countries, she added.

Sitharaman said in addition to economic relief measures, India has undertaken significant structural reforms to turn the crisis into an opportunity and emerge stronger.

These reforms across diverse areas include agriculture and food processing, commercial coal mining, financial support to MSMEs and change in definition with increased thresholds, production linked incentive schemes to boost manufacturing, privatisation of PSUs and asset monetisation, increased FDI limit in defence and insurance are amongst the most notable reforms and have set a strong foundation for India's post-COVID economic growth, she said.

Production Linked Incentive (PLI) schemes have been introduced across key sectors to create national manufacturing champions and generate employment opportunities for the country's youth.

The objective is to make India a bigger and more important part of the global economy by pursuing policies that are efficient, competitive and resilient,&nbsp;she said.

Observing that Infrastructure development has assumed a major focus in strengthening India's economic recovery, the finance minister said India has a robust National Infrastructure Pipeline (NIP) which is a first-of-its-kind, whole-of-government exercise to provide world-class infrastructure.

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Measures have been undertaken to promote ease of doing business with rational tax systems, simple and clear laws, reducing compliance burden and leveraging technology for better compliance,&nbsp;she said.

As a recent major initiative, the government has taken steps to scrap the retrospective tax law which would help resolve tax disputes and boost investor confidence,&nbsp;she added.

Despite the pandemic, India received its highest ever FDI inflows of USD 82.0 billion in FY 2020-21. The trend in India's FDI is an endorsement of its status as a preferred investment destination amongst global investors,&nbsp;said the Union finance minister.&nbsp;

India has not only faced the COVID-19 crisis with great resilience and fortitude but has also played a major role and "walked the talk" on the global fight against it, Union Finance Minister Nirmala Sitharaman has said.

India has not only faced the COVID-19 crisis with great resilience and fortitude but has also played a major role and "walked the talk" on the global fight against it, Union Finance Minister Nirmala Sitharaman has said. Pointing out the fast recovery of India's economy, Sitharaman in her address to the Development Committee of the World Bank said the Modi Government, besides taking economic relief measures, has also undertaken significant structural reforms to turn the crisis into an opportunity and emerge stronger. Also Read | Indian economy to grow at 9.5 per cent in 2021: IMF The measures undertaken by the government have set a strong foundation for India's sustained economic growth, she said. According to the International Monetary Fund's World Economic Outlook, India is estimated to be the fastest-growing major economy in 2021, projected to grow at 9.5 per cent in 2021 and 8.5 per cent in 2022. Observing that despite the pandemic, India received its highest ever FDI inflows of USD82.0 billion in fiscal 2020-21, the finance minister said this trend in India's FDI is an endorsement of its status as a preferred investment destination amongst global investors. Addressing the Development Committee meeting, Sitharaman said India has faced the COVID-19 crisis with great resilience and fortitude. The country's pandemic response has focused on the twin goals of saving both the lives and livelihoods, she said. When faced with the second wave of infections, India again mounted a carefully calibrated and dynamic response to the evolving situation. Given that the second wave was asynchronous in its onset across states and wider in its spread, only localised lockdowns were imposed during the second wave, she said. Also Read | IMF cuts China's growth forecast amid 'disorderly corporate debt defaults' This approach aided reduction in cases in the COVID-19 hotspots without dampening economic activity in regions with fewer cases, she said. Despite a more brutal second wave, India's GDP grew at 20.1 per cent YoY during April-June quarter of 2021, recovering more than 90 per cent of the corresponding pre-pandemic output levels of 2019, she added. The broad-based and swift recovery of both the demand and supply-side components reaffirms India's resilient recovery and strong macroeconomic fundamentals. With the easing of the COVID-19 restrictions, GST collections for July, August and September 2021 have crossed the INR 1 trillion mark, which testifies to the fact that the economy is recovering at a fast pace. The robust GST revenues are expected to continue in the coming months too as the economic recovery gathers momentum, the finance minister said. India, she said, is one of the frontrunners in the global vaccine deployment race with the second-highest total number of COVID-19 vaccines administered all over the world. As of September 30, India has administered 951.35 million doses, covering 72.8 per cent of the 18 years (as on August 10, 2021) and above population with at least one dose of COVID-19 vaccine. India has also played a major role and truly walked the talk' on the global COVID-19 effort. India's massive Vaccine Maitri programme, under which more than 66.3 million doses of COVID-19 vaccines were exported to 95 countries worldwide bears special mention. India is all set to resume vaccine export in October 2021 she said. Also Read | High vaccination rate will aid India's economic recovery: Gita Gopinath India also made its digital platform for COVID-19 vaccination, CoWIN, an open-source for all countries to access, adapt and use. India is also at the forefront of multilateral efforts, including the Quad plan for the production of one billion vaccines to be offered to South-East Asian countries, she added. Sitharaman said in addition to economic relief measures, India has undertaken significant structural reforms to turn the crisis into an opportunity and emerge stronger. These reforms across diverse areas include agriculture and food processing, commercial coal mining, financial support to MSMEs and change in definition with increased thresholds, production linked incentive schemes to boost manufacturing, privatisation of PSUs and asset monetisation, increased FDI limit in defence and insurance are amongst the most notable reforms and have set a strong foundation for India's post-COVID economic growth, she said. Production Linked Incentive (PLI) schemes have been introduced across key sectors to create national manufacturing champions and generate employment opportunities for the country's youth. The objective is to make India a bigger and more important part of the global economy by pursuing policies that are efficient, competitive and resilient, she said. Observing that Infrastructure development has assumed a major focus in strengthening India's economic recovery, the finance minister said India has a robust National Infrastructure Pipeline (NIP) which is a first-of-its-kind, whole-of-government exercise to provide world-class infrastructure. Also Read | Mark Zuckerberg loses $7 billion in hours as Facebook plunges Measures have been undertaken to promote ease of doing business with rational tax systems, simple and clear laws, reducing compliance burden and leveraging technology for better compliance, she said. As a recent major initiative, the government has taken steps to scrap the retrospective tax law which would help resolve tax disputes and boost investor confidence, she added. Despite the pandemic, India received its highest ever FDI inflows of USD 82.0 billion in FY 2020-21. The trend in India's FDI is an endorsement of its status as a preferred investment destination amongst global investors, said the Union finance minister.

India has faced Covid crisis with resilience and fortitude: Sitharaman

India's economy, which contracted by 7.3 per cent due to the COVID-19 pandemic, is expected to grow by 9.5 per cent in 2021 and 8.5 per cent in 2022, according to latest projections released by the International Monetary Fund on Tuesday.

India's growth projection released by the latest World Economic Outlook remains unchanged from its previous WEO (World Economic Outlook) update of July this summer but is a three-percentage point in 2021 and 1.6 percentage point drop from its April projections.

<a href="https://www.wionews.com/business-economy/imf-cuts-chinas-growth-forecast-amid-disorderly-corporate-debt-defaults-420197">Also Read:&nbsp;IMF cuts China's growth forecast amid 'disorderly corporate debt defaults'</a>

According to the latest WEO update, released ahead of the annual meeting of the IMF and the World Bank, the world is expected to grow at 5.9 per cent in 2021 and 4.9 per cent in 2022.

<div class="ui-state-default" contenteditable="false">
<div class="twitter-block" draggable="false">
<blockquote class="twitter-tweet">
IMF Projections: 2022 
 
USA🇺🇸: 5.2% 
Germany🇩🇪: 4.6% 
France🇫🇷: 3.9% 
Italy🇮🇹: 4.2% 
Spain🇪🇸: 6.4% 
Japan🇯🇵: 3.2% 
UK🇬🇧: 5% 
Canada🇨🇦: 4.9% 
China🇨🇳: 5.6% 
India🇮🇳: 8.5% 
Russia🇷🇺: 2.9% 
Brazil🇧🇷: 1.5% 
Mexico🇲🇽: 4% 
KSA🇸🇦: 4.8% 
Nigeria🇳🇬: 2.7% 
S. Africa🇿🇦: 2.2%<a href="https://t.co/j0FIiCr9li">https://t.co/j0FIiCr9li</a> <a href="https://twitter.com/hashtag/WEO?src=hash&amp;ref_src=twsrc%5Etfw">#WEO</a> <a href="https://t.co/SLNNQqHyt1">pic.twitter.com/SLNNQqHyt1</a>
— IMF (@IMFNews) <a href="https://twitter.com/IMFNews/status/1447924122705616902?ref_src=twsrc%5Etfw">October 12, 2021</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></div>
<a class="close-mark close-div" href="#" id="jqclosemark">×</a></div>

The United States is projected to grow at six per cent this year and 5.2 per cent the next year.

China, on the other hand, the IMF said is projected to grow at 8 per cent in 2021 and 5.6 per cent in 2022.

Gita Gopinath, Chief Economist of the IMF, said that compared to their July forecast, the global growth projection for 2021 has been revised down marginally to 5.9 per cent and is unchanged for 2022 at 4.9 per cent. However, this modest headline revision masks large downgrades for some countries.

"The outlook for the low-income developing country group has darkened considerably due to worsening pandemic dynamics. The downgrade also reflects more difficult near-term prospects for the advanced economy group, in part due to supply disruptions,? she said.

"Partially offsetting these changes, projections for some commodity exporters have been upgraded on the back of rising commodity prices. Pandemic-related disruptions to contact-intensive sectors have caused the labour market recovery to significantly lag the output recovery in most countries,"&nbsp;the Indian-American economist added.

Observing that the dangerous divergence in economic prospects across countries remains a major concern, she said aggregate output for the advanced economy group is expected to regain its pre-pandemic trend path in 2022 and exceed it by 0.9 per cent in 2024.

"By contrast, aggregate output for the emerging market and developing economy group (excluding China) is expected to remain 5.5 per cent below the pre-pandemic forecast in 2024, resulting in a larger setback to improvements in their living standards,"&nbsp;she added.

Noting that a principal common factor behind these complex challenges is the continued grip of the pandemic on global society, Gopinath said that the foremost policy priority is, therefore, to vaccinate at least 40 per cent of the population in every country by end-2021 and 70 per cent by mid-2022.

"This will require high-income countries to fulfill existing vaccine dose donation pledges, coordinate with manufacturers to prioritise deliveries to COVAX in the near-term and remove trade restrictions on the flow of vaccines and their inputs,"&nbsp;she said.

India's economy, which contracted by 7.3 per cent due to the COVID-19 pandemic, is expected to grow by 9.5 per cent in 2021 and 8.5 per cent in 2022, according to latest projections released by the International Monetary Fund on Tuesday.

India's economy, which contracted by 7.3 per cent due to the COVID-19 pandemic, is expected to grow by 9.5 per cent in 2021 and 8.5 per cent in 2022, according to latest projections released by the International Monetary Fund on Tuesday. India's growth projection released by the latest World Economic Outlook remains unchanged from its previous WEO (World Economic Outlook) update of July this summer but is a three-percentage point in 2021 and 1.6 percentage point drop from its April projections. Also Read: IMF cuts China's growth forecast amid 'disorderly corporate debt defaults' According to the latest WEO update, released ahead of the annual meeting of the IMF and the World Bank, the world is expected to grow at 5.9 per cent in 2021 and 4.9 per cent in 2022. IMF Projections: 2022 USA🇺🇸: 5.2% Germany🇩🇪: 4.6% France🇫🇷: 3.9% Italy🇮🇹: 4.2% Spain🇪🇸: 6.4% Japan🇯🇵: 3.2% UK🇬🇧: 5% Canada🇨🇦: 4.9% China🇨🇳: 5.6% India🇮🇳: 8.5% Russia🇷🇺: 2.9% Brazil🇧🇷: 1.5% Mexico🇲🇽: 4% KSA🇸🇦: 4.8% Nigeria🇳🇬: 2.7% S. Africa🇿🇦: 2.2%https://t.co/j0FIiCr9li #WEO pic.twitter.com/SLNNQqHyt1 — IMF (@IMFNews) October 12, 2021 × The United States is projected to grow at six per cent this year and 5.2 per cent the next year. China, on the other hand, the IMF said is projected to grow at 8 per cent in 2021 and 5.6 per cent in 2022. Gita Gopinath, Chief Economist of the IMF, said that compared to their July forecast, the global growth projection for 2021 has been revised down marginally to 5.9 per cent and is unchanged for 2022 at 4.9 per cent. However, this modest headline revision masks large downgrades for some countries. "The outlook for the low-income developing country group has darkened considerably due to worsening pandemic dynamics. The downgrade also reflects more difficult near-term prospects for the advanced economy group, in part due to supply disruptions,? she said. "Partially offsetting these changes, projections for some commodity exporters have been upgraded on the back of rising commodity prices. Pandemic-related disruptions to contact-intensive sectors have caused the labour market recovery to significantly lag the output recovery in most countries," the Indian-American economist added. Observing that the dangerous divergence in economic prospects across countries remains a major concern, she said aggregate output for the advanced economy group is expected to regain its pre-pandemic trend path in 2022 and exceed it by 0.9 per cent in 2024. "By contrast, aggregate output for the emerging market and developing economy group (excluding China) is expected to remain 5.5 per cent below the pre-pandemic forecast in 2024, resulting in a larger setback to improvements in their living standards," she added. Noting that a principal common factor behind these complex challenges is the continued grip of the pandemic on global society, Gopinath said that the foremost policy priority is, therefore, to vaccinate at least 40 per cent of the population in every country by end-2021 and 70 per cent by mid-2022. "This will require high-income countries to fulfill existing vaccine dose donation pledges, coordinate with manufacturers to prioritise deliveries to COVAX in the near-term and remove trade restrictions on the flow of vaccines and their inputs," she said.

Indian economy to grow at 9.5 per cent in 2021: IMF

For the next fiscal, however, the IMF has forecast an 8.5% growth for India, 160 basis points higher than its April forecast.

IMF cuts India's GDP growth forecast to 9.5 per cent

Rating agency Moody’s Investor Service on Tuesday slashed India’s Gross Domestic Product (GDP) growth forecast for the current financial year 2021-22 to 9.3 per cent from the projected 13.7 per cent.

Moody's slashes FY22 GDP forecast for India to 9.3%

India can again reclaim the position of the fastest growing economy in the world in 2021-22, a report by The Organisation for Economic Co-operation and Development (OECD) on Tuesday said.&nbsp;

The report also projected the Indian economy to grow at 12.6 per cent, the highest among the G20 countries in the financial year 2021-22.&nbsp;

It said if India achieves the projected growth, the country will "reclaim its status as the fastest-growing major economy from China."

Watch |&nbsp;

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/world-business-watch-india-could-be-back-as-fastest-growing-economy-again-369296/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

The projections have come after India recorded a 0.4 per cent rise in GDP in the last quarter, ending two back-to-back negative growth rates.&nbsp;

The forecast for the global economy rose to 5.6 per cent in 2021 from the previous estimate of 4.2 per cent, the report said.

It said that in recent months global economic prospects have improved considerably due to a gradual supply of effective vaccines and countries have announced more fiscal support.&nbsp;

"Significant fiscal and monetary support continues to underpin activity. Additional discretionary fiscal measures announced in several countries during the past three months will add to the overall support this year, including in the US, Japan, Germany, Canada, and India," the report said. 
&nbsp;

India can again reclaim the position of the fastest growing economy in the world in 2021-22, a report by The Organisation for Economic Co-operation and Development (OECD) on Tuesday said.

India can again reclaim the position of the fastest growing economy in the world in 2021-22, a report by The Organisation for Economic Co-operation and Development (OECD) on Tuesday said. The report also projected the Indian economy to grow at 12.6 per cent, the highest among the G20 countries in the financial year 2021-22. It said if India achieves the projected growth, the country will "reclaim its status as the fastest-growing major economy from China." Watch | The projections have come after India recorded a 0.4 per cent rise in GDP in the last quarter, ending two back-to-back negative growth rates. The forecast for the global economy rose to 5.6 per cent in 2021 from the previous estimate of 4.2 per cent, the report said. It said that in recent months global economic prospects have improved considerably due to a gradual supply of effective vaccines and countries have announced more fiscal support. "Significant fiscal and monetary support continues to underpin activity. Additional discretionary fiscal measures announced in several countries during the past three months will add to the overall support this year, including in the US, Japan, Germany, Canada, and India," the report said.

With growth rate of 12.6%, India could become world's fastest-growing economy: Report

National Statistical Office of India has released the GDP growth estimates for Quarter 3 in the Financial year. The GDP growth is now projected at 0.4%.

News Alert: India's GDP number for financial year 2021 year out

India is thus a net importer in November 2020, with a trade deficit of USD 9.96 billion, as compared to a trade deficit of USD 12.75 billion, an improvement by 21.93%.

India's November trade deficit narrows to $9.96 billion

India’s economy shrank 7.5 per cent in the fiscal second quarter, after seeing a record contraction of 23.9 per cent in Q1.

WION Dispatch: India’s economy shrinks 7.5% in Q2, falls into recession

Finance Minister Nirmala Sitharaman is addressed a press conference during which the FM announced more stimulus to boost the Coronavirus-hit economy. FM announces Atmanirbhar Bharat Rozgar Yojana for formal sector.

WION Dispatch: Finance Minister announces more stimulus to boost 'COVID-hit' economy

Activity in India’s dominant services industry, expanded for the first time in eight months in October as demand surged.

India's services activity grows in October after months of contraction

India's factory activity expanded at its fastest pace in over a decade in October as demand and output continued to recover strongly from coronavirus-related disruptions

India's October factory growth at decade high

Goods and Services Tax (GST) collections for October grossed Rs 1.05 lakh crore, the highest so far in the financial year and 10% higher than collections in the same month last year, which stood at Rs 95,379 crore.

GST collection crosses Rs 1 lakh crore mark for first time since February

IMF has said that India's gross domestic product (GDP) is expected to contract by 10.3% due to the impact of the national lockdown and the income shock experienced by households and firms due to the COVID-19 pandemic.

IMF's biannual world economic outlook: India's GDP to contract

The World Bank has said India’s GDP is expected to further contract by 9.6% this fiscal as a reflection of the economic slump the country has suffered due to the national lockdown induced by the coronavirus pandemic.

World Bank: India's GDP to contract in FY21

The World Bank on Thursday said that India’s GDP is expected to contract by 9.6 per cent this fiscal which is reflective of the national lockdown and the income shock experienced by households and firms due to the COVID-19 pandemic, noting that the country’s economic situation is “much worse” than ever seen before.

The Washington-based global lender, in its latest South Asia Economic Focus report ahead of the annual meeting of the World bank and International Monetary Fund, forecasts a sharper than expected economic slump across the region, with regional growth expected to contract by 7.7 per cent in 2020, after topping six per cent annually in the past five years.

Also read |&nbsp;<a href="https://www.wionews.com/india-news/india-to-become-first-country-to-circulate-iodine-based-sanitisers-333155">India to become first country to circulate iodine-based sanitisers</a>

“India’s GDP is expected to contract by 9.6 per cent in the fiscal year that started in March,” the World Bank said in the report released here.

Regional growth is projected to rebound to 4.5 per cent in 2021, it said.

Factoring in population growth, however, income-per-capita in the region will remain 6 per cent below 2019 estimates, indicating that the expected rebound will not offset the lasting economic damage caused by the pandemic, it said.

“The situation is much worse in India than we have ever seen before,” Hans Timmer, World Bank Chief Economist for South Asia told reporters during a conference call.

“It is an exceptional situation in India. A very dire outlook,” he said.

There was a 25 per cent decline in GDP in the second quarter of the year, which is the first quarter of the current fiscal year in India.

In the report, the World bank said that the spread of the coronavirus and containment measures have severely disrupted supply and demand conditions in India.

With the intent to contain the spread of COVID-19, Prime Minister Narendra Modi, with effect from March 25, announced a nationwide complete lockdown that brought as much as 70 per cent of economic activity, investment, exports and discretionary consumption to a standstill. Only essential goods and services such as agriculture, mining, utility services, some financial and IT services and public services were allowed to operate.

Dubbed as the world’s biggest lockdown, it shut a majority of the factories and businesses, suspended flights, stopped trains and restricted movement of vehicles and people.

According to the World Bank, monetary policy has been deployed aggressively and fiscal resources have been channeled to public health and social protection, but additional counter-cyclical measures will be needed, within a revised medium-term fiscal framework.

Despite measures to shield vulnerable households and firms, the trajectory of poverty reduction has slowed, if not reversed, it said.

“We have seen from the rapid survey that many people have lost their jobs,” Timmer said, adding that this is happening against a background when India’s economy was already slowing down before the pandemic.

“We had seen a rise in non-performing loans. Those are all vulnerabilities that India has to deal with,” he said.

Responding to a question, Timmer said what the Indian government has done with limited resources and limited fiscal space is very impressive.

“We have seen a loosening of monetary policy. You have seen attempts to increase credit to the private sector to help a company survive,” he said, adding that there have been big efforts in the health sector and expansion of a social safety net.

“But with every big crisis, I think, we have to realise that this will not go over anytime soon. And it will actually change the longer-term future also. What this reveals is really as good as federal policies, especially the policies related to the informal sector.

“There’s a big problem that the informal sector has no coverage in social insurance. What we see now is that especially the informal workers in the middle of the income distribution have lost their jobs. There are no systems in place to support those people,” Timmer said.

Responding to another question, Timmer said that as a result of COVID-19, the World Bank estimates that in one year, the number of people living below the poverty line has increased by 33 per cent.

In its report, the World Bank said that the response of the government of India to the COVID-19 outbreak was swift and comprehensive. A strict lockdown was implemented to contain the health emergency.

To mitigate its impact on the poorest, it was complemented by social protection measures; to ensure that businesses could maintain their operations, the Reserve Bank of India and the government also provided liquidity and other regulatory support, it said.

“Nonetheless, there was a massive contraction in output and poor and vulnerable households experienced significant social hardships — specifically urban migrants and workers in the informal economy,” the bank said.

After fiscal 2017, during which the economy grew at 8.3 per cent, growth decelerated in each subsequent year to 7.0, 6.1 and 4.2 per cent.

This was on account of two mutually reinforcing dynamics: emerging weaknesses in non-bank financial companies (a major source of credit growth, making up for risk aversion from banks) and slowing private consumption growth, the bank added.

The World Bank on Thursday said that India’s GDP is expected to contract by 9.6 per cent this fiscal which is reflective of the national lockdown and the income shock experienced by households and firms due to the COVID-19 pandemic, noting that the country’s economic situation is “much worse” than ever seen before.

The World Bank on Thursday said that India’s GDP is expected to contract by 9.6 per cent this fiscal which is reflective of the national lockdown and the income shock experienced by households and firms due to the COVID-19 pandemic, noting that the country’s economic situation is “much worse” than ever seen before. The Washington-based global lender, in its latest South Asia Economic Focus report ahead of the annual meeting of the World bank and International Monetary Fund, forecasts a sharper than expected economic slump across the region, with regional growth expected to contract by 7.7 per cent in 2020, after topping six per cent annually in the past five years. Also read | India to become first country to circulate iodine-based sanitisers “India’s GDP is expected to contract by 9.6 per cent in the fiscal year that started in March,” the World Bank said in the report released here. Regional growth is projected to rebound to 4.5 per cent in 2021, it said. Factoring in population growth, however, income-per-capita in the region will remain 6 per cent below 2019 estimates, indicating that the expected rebound will not offset the lasting economic damage caused by the pandemic, it said. “The situation is much worse in India than we have ever seen before,” Hans Timmer, World Bank Chief Economist for South Asia told reporters during a conference call. “It is an exceptional situation in India. A very dire outlook,” he said. There was a 25 per cent decline in GDP in the second quarter of the year, which is the first quarter of the current fiscal year in India. In the report, the World bank said that the spread of the coronavirus and containment measures have severely disrupted supply and demand conditions in India. With the intent to contain the spread of COVID-19, Prime Minister Narendra Modi, with effect from March 25, announced a nationwide complete lockdown that brought as much as 70 per cent of economic activity, investment, exports and discretionary consumption to a standstill. Only essential goods and services such as agriculture, mining, utility services, some financial and IT services and public services were allowed to operate. Dubbed as the world’s biggest lockdown, it shut a majority of the factories and businesses, suspended flights, stopped trains and restricted movement of vehicles and people. According to the World Bank, monetary policy has been deployed aggressively and fiscal resources have been channeled to public health and social protection, but additional counter-cyclical measures will be needed, within a revised medium-term fiscal framework. Despite measures to shield vulnerable households and firms, the trajectory of poverty reduction has slowed, if not reversed, it said. “We have seen from the rapid survey that many people have lost their jobs,” Timmer said, adding that this is happening against a background when India’s economy was already slowing down before the pandemic. “We had seen a rise in non-performing loans. Those are all vulnerabilities that India has to deal with,” he said. Responding to a question, Timmer said what the Indian government has done with limited resources and limited fiscal space is very impressive. “We have seen a loosening of monetary policy. You have seen attempts to increase credit to the private sector to help a company survive,” he said, adding that there have been big efforts in the health sector and expansion of a social safety net. “But with every big crisis, I think, we have to realise that this will not go over anytime soon. And it will actually change the longer-term future also. What this reveals is really as good as federal policies, especially the policies related to the informal sector. “There’s a big problem that the informal sector has no coverage in social insurance. What we see now is that especially the informal workers in the middle of the income distribution have lost their jobs. There are no systems in place to support those people,” Timmer said. Responding to another question, Timmer said that as a result of COVID-19, the World Bank estimates that in one year, the number of people living below the poverty line has increased by 33 per cent. In its report, the World Bank said that the response of the government of India to the COVID-19 outbreak was swift and comprehensive. A strict lockdown was implemented to contain the health emergency. To mitigate its impact on the poorest, it was complemented by social protection measures; to ensure that businesses could maintain their operations, the Reserve Bank of India and the government also provided liquidity and other regulatory support, it said. “Nonetheless, there was a massive contraction in output and poor and vulnerable households experienced significant social hardships — specifically urban migrants and workers in the informal economy,” the bank said. After fiscal 2017, during which the economy grew at 8.3 per cent, growth decelerated in each subsequent year to 7.0, 6.1 and 4.2 per cent. This was on account of two mutually reinforcing dynamics: emerging weaknesses in non-bank financial companies (a major source of credit growth, making up for risk aversion from banks) and slowing private consumption growth, the bank added.

India's GDP expected to contract by 9 per cent this year: World Bank

Global ratings agency Fitch on Tuesday sharply revised its forecast to India's GDP growth, estimating that it will contract 10.5%, while Goldman Sachs expects it to decline by 14.8%in the current fiscal year.

Global rating agencies cut India's GDP forecast

There is no sign of a health-economy trade-off. Countries with low GDP fall have less COVID-19 deaths. India's economy suffered its worst slump on record in April-June, with the gross domestic product (GDP) contracting by 23.9 per cent as the coronavirus-related lockdowns weighed on the already-declining consumer demand and investment.

Countries with low GDP fall have less COVID-19 deaths

India's economic collapse has led to many unwanted firsts. The GDP contraction of 23.9% in Q1 is the sharpest on record. Finance Minister Nirmala Sitharaman has called this an 'Act Of God'.

Gravitas: India's Worst GDP Contraction On Record

As per the data released by the National Statistical Office (NSO), India’s Gross Domestic Product (GDP) for the April-June quarter (Q1) slipped by a sharp 23.9 per cent.

First GDP numbers during COVID times

India’s GDP contracts by 23.9% in April-June quarter

The impact of the pandemic could cause a structural downshift in the potential output of Indian economy, the RBI said on Tuesday in its 2019-20 annual report.

Economic recovery post COVID-19 will be different from that of 2008

India's economy grew&nbsp;3.1 per cent in the January-March quarter of 2019-20 as against 5.7 per cent in the corresponding quarter of 2018-19, according to data released by the National Statistical Office (NSO).

In 2019-20, the Indian economy had grown&nbsp;by 4.2 per cent against 6.1 per cent in 2018-19, the government statistical body said.

The government had imposed a lockdown on March 25, however, slow business growth in the January-March quarter had impacted the Indian economy.

India's annual growth hit an 11-year low at 4.2 per cent as a fallout of the coronavirus epidemic.&nbsp;

China's economy had shrunk by 6.8 per cent in January-March 2020 due to the impact of coronavirus pandemic.

India's economy grew 3.1 per cent in the January-March quarter of 2019-20 as against 5.7 per cent in the corresponding quarter of 2018-19, according to data released by the National Statistical Office (NSO).

India's economy grew 3.1 per cent in the January-March quarter of 2019-20 as against 5.7 per cent in the corresponding quarter of 2018-19, according to data released by the National Statistical Office (NSO). In 2019-20, the Indian economy had grown by 4.2 per cent against 6.1 per cent in 2018-19, the government statistical body said. The government had imposed a lockdown on March 25, however, slow business growth in the January-March quarter had impacted the Indian economy. India's annual growth hit an 11-year low at 4.2 per cent as a fallout of the coronavirus epidemic. China's economy had shrunk by 6.8 per cent in January-March 2020 due to the impact of coronavirus pandemic.

India's GDP growth slips to 3.1% in January-March quarter

Watch today in WION Dispatch: India GDP growth slows to 3.1% in Q4 of 2019-20. This is the lowest GDP growth in last 11 years. Watch this video to know more.

WION Dispatch: India GDP growth slows to 3.1% in Q4 of 2019-20

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