UN projects India's GDP to grow by 6.5% in 2021-22
The United Nations (UN) has projected that India’s GDP will grow at 6.5 per cent in 2021-22, a contraction from the estimated growth of 8.4 per cent in 2020-21. Growth is forecast to further slow down to 5.9 per cent in 2022-23. On a calendar year basis, the UN stated that India’s GDP is projected to expand by 6.7 per cent in 2022 after a nine per cent expansion in calendar year 2021, as base effects wane. GDP growth for the country is forecast to slow down to 6.1 per cent in calendar year 2023. As per UN’s World Economic Situation and Prospects (WESP) 2022 report, India’s economic recovery is on a solid path amid rapid vaccination progress, less stringent social restrictions and still supportive fiscal and monetary stances. Robust export growth and public investments underpin economic activity, but high oil prices and coal shortages could put the brakes on economic activity in the near term. It further stressed that to support inclusive growth beyond the recovery, India must encourage private investment.