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The World Bank in its latest Global Economic Prospects report has retained India’s gross domestic product (GDP) growth forecast at 8.3 percent for current fiscal year 2021-22 (FY22) as what was stated in its last projection released in October 2021. Besides, it upgraded the country’s growth forecast for FY23 to 8.7 percent from 7.5 percent estimated earlier. It cited improving growth prospects, especially a reviving private capex cycle for up-gradation.

According to the report, the growth rate of the Indian economy in the current and next fiscal will be stronger as compared to its immediate neighbours. Bangladesh is expected to grow at 6.4 and 6.9 percent in FY22 and FY23, respectively; Nepal at 3.9 percent this fiscal and at 4.7 percent in the next financial year; and Pakistan's economy is predicted to accelerate by 3.4 percent in FY22 and 4 percent in FY23.

The global economic growth will ‘decelerate markedly’ this year as COVID-19 outbreaks and supply chain snarls persist. At the same time, the support programmes unveiled by several governments are about to end. The World Bank forecast global growth to slow down to 4.1 percent this year from an estimated 5.5 percent in 2021, but warned ‘Omicron-related economic disruptions could substantially reduce growth’ to as low as 3.4 percent.