The Organisation for Economic Co-operation and Development (OECD) cut its growth projection for India for FY22 to 9.9% from 12.6% estimated in March, as the second wave of coronavirus infections has paused economic recovery in Asia's third largest economy. OECD said while India is projected to be the fastest-growing G20 economy in 2021, it will also be the one which is the furthest away from its pre-crisis GDP trend.
Prospects for the world economy have brightened but the recovery is likely to remain uneven and, crucially, dependent on the effectiveness of public health measures and policy support, according to the OECD's latest Economic Outlook. In many advanced economies more and more people are being vaccinated, government stimulus is helping to boost demand and businesses are adapting better to the restrictions to stop the spread of the virus. But elsewhere, including in many emerging-market economies where access to vaccines as well as the scope for government support are limited, the economic recovery will be modest.
The OECD has revised up its growth projections across the world's major economies since its last full Economic Outlook in December 2020. It now sees global GDP growth at 5.8 % this year (compared with 4.2% projected in December), helped by a government stimulus-led upturn in the United States, and at 4.4% in 2022 (3.7% in December). The world economy has now returned to pre-pandemic activity levels, but real global income will still be some USD 3 trillion less by the end of 2022 than it would have been without a crisis.
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