India’s economy, which has been hit hard by the COVID-19 pandemic, is now in recovery mode and the World Bank welcomes this, its president David Malpass said on Wednesday.
Malpass also said that India, which faces enormous challenges in integrating more people into the formal sector economy and increasing the incomes of the population, has made progress, but it is not enough.
“Indians have been hit hard by the waves of COVID and it is unfortunate. They have responded with the huge production of vaccines and there has been progress in the vaccination effort. But we have to recognize the blow COVID has caused on the Indian economy and in particular on the large informal sector of the Indian economy, â€Malpass told reporters here.
Last week, the World Bank forecast India’s economy to grow 8.3 percent this year.
He also said that India, like other countries, is now facing a supply chain disruption due to COVID-19.
“The Indian economy is recovering and we welcome it. It’s getting to the other side of COVID from… the last wave. Its good. But India, like other countries, is now hit hard by supply chain disruptions and rising inflation around the world, â€Malpass said in response to a question.
“I give the general mixed opinion that there is progress, but not enough. India faces enormous challenges in integrating more people into its economy in the formal sector economy and increasing people’s incomes, â€he said.
The Indian government, he said, is focusing on this.
Malpass said he visited India in late 2019 and saw the changes taking place which were quite positive in terms of the banking system, financial system, civil service system and the means by which India is seeking ways to improve drinking water. situation which is very important in India for child nutrition to improve nutrition.
Clean water is one of the most important starting points for life, he said.
“I mentioned that this is a huge, giant challenge for the world’s largest democracy,†said Malpass.
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India’s growth projection released by the latest World Economic Outlook remains unchanged from its previous update of this summer’s July WEO (World Economic Outlook), but is three points lower. percentage in 2021 and 1.6 percentage points down from its April projections.
“As for India’s growth, we’re looking at near double-digit growth this year and that would be the highest in the world. And for next year, based on this year, (the) growth would be definitely be somewhere in the eight (percent) range, â€Sitharaman said here Tuesday in a conversation at Harvard Kennedy School.
