World bank country, Novel by Lawrence Hill

New Delhi, Aug 19 As coronavirus cases continue to surge in India, restricting several economic activities, the World Bank may project a steeper contraction of the Indian economy for the current financial year, revised from the previous estimate of 3.2 per cent.In its report 'India Development Update' for July 2020, the World Bank said that amid rapidly evolving conditions, projections made in May are likely to be revised as new information is incorporated, especially as the daily number of cases continues to increase resulting in several states and districts re-imposing lockdowns, and available high frequency indicators show that the economy has not yet reverted to baseline.In May, the World Bank had projected the Indian economy to contract by 3.2 per cent in FY 2020-21, and predicted rebound slowly in the next fiscal.In its report released on Wednesday, the World Bank said that in the current, rapidly evolving context these projections are likely to be revised as new information is incorporated."In our revised projections, which would be available in October 2020, we would likely project a steeper contraction in the economy," it said.It noted that although a rebound is expected in FY 2021-22, it will take place "very slowly, reflecting the impact of the crisis not only on India's current growth but also on potential output, which is expected to return to trend only over the next several quarters".Junaid Ahmad, World Bank Country Director in India, said: "While the government of India, with the support of the Reserve Bank of India, is continuing to take action to limit the impact of the COVID-19 pandemic, there is a recognition of both the uncertainty of the nature of the economic revival globally and the emergence of opportunities opened by the current crisis."He noted that the countries that invest in sectoral reforms infrastructure, labour and land, human capital and ensure that their national systems are connected to the global value chains, are more able to respond to uncertainties and are better placed to take advantage of any global shifts."Investing in these areas will give India the ability to navigate these uncertainties and be more competitive as the world emerges from the pandemic," Ahmad said.On the government disinvestment plans, the World Bank report said that given unprecedented financial market volatility, planned disinvestment is expected to proceed more slowly in the near-term.As a result, the fiscal deficit and debt of the central government are likely to increase sharply over the next two years, it said.( With inputs from IANS )Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

Home

City

Latest News

Cricket

LT Premium

National

International

Maharashtra

Opinions

Chhatrapati Sambhajinagar

Nagpur

Entertainment

Photos

Business

Technology

Sports

Lifestyle

Social Viral

Lokmat Games

Health

Pahalgam Terror Attack

Tahawwur Rana

IPL 2025

CM Devendra Fadnavis

Mumbai Local

Weather Update

World Bank CountryFOLLOW

World bank country, Latest News

International :Experts from domestic, international banks discuss ways to strengthen Afghanistan's payments system

Kabul [Afghanistan], June 17 : World Bank Country Director for Afghanistan, Melinda Good, said that at a workshop over ... ...

International :Nepal government initiates demolition of Kalanki-Koteshwar road section

Kathmandu [Nepal], May 8 : Nepal government has initiated the demolition of the Kalanki-Koteshwar road section under the ring ... ...

International :International donors pledge $500 million for flood relief in Pakistan

Islamabad, Aug 26 As Pakistan faces its worst destruction, devastation, humanitarian crisis and catastrophe due to flash floods ... ...

International :Myanmar economy to be severely tested, growth projected at 1 pc: World Bank

Myanmar's economy will be severely tested by the ongoing impacts of the military coup and the surge in COVID-19 cases in 2021, the World Bank said in its latest report. ...

Business :World Bank may project steeper contraction of Indian economy for FY21

New Delhi, Aug 19 As coronavirus cases continue to surge in India, restricting several economic activities, the World ... ...