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The World Bank has projected India's Gross domestic product (GDP) to grow at 8.3 percent in 2021 and 7.5 percent 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. It also said 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.

The Washington-based global lender has stated that activity will benefit from policy support, including higher spending on infrastructure, rural development, and health, and a stronger-than expected recovery in services and manufacturing. Although the forecast has been revised up by 2.9 percentage points, it marks significant expected economic damage from an enormous second COVID-19 wave and localised mobility restrictions since March 2021.

It also stated that the pandemic will undermine consumption and investment as confidence remains depressed and balance sheets damaged. Growth in FY 2022/23 is expected to slow to 7.5 percent, reflecting lingering impacts o