India’s would be the fastest-growing economy in the world, as per a report of the Organisation for Economic Co-Operation and Development (OECD).
The Paris-based body claimed that India would rebound sharply from the travails of Covid-19 to 12.6 per cent growth in FY22, supported by strong fiscal and quasi-fiscal measures.
“Activity moved above pre-pandemic levels in China, India, and Turkey, helped by strong fiscal and quasi-fiscal measures and a recovery in manufacturing and construction,” it said in a report.
It mentioned coronavirus vaccine production in the country is “super encouraging”, but deployment speed will be critical for recovery.
It expects India’s GDP to contract only 7.4 per cent in FY21, against the December 2020 projection of 9.9 per cent shrinkage.
“In India we revised (upwards) to a large extent based on very good numbers towards the end of the year (as) Indian performance was much better than we expected at that time. Now they also have to proceed with faster vaccination which they have started to do,” according to ET which cited OECD chief economist Laurence Boone.
The Indian economy entered the positive territory with a growth of 0.4 per cent in the October-December quarter after contracting for two quarters in a row.