India could use 3-5% of GDP stabilising economy: World Bank economists

The lockdown of economies around the world causes a much sharper decline in economic activity than in normal recessions, says World Bank chief economist south Asia region, Hans Timmer

The World Bank, in its report on South Asia, has cut projections for India’s economic growth to 1.5-2.8 per cent, from earlier 6.1 per cent, for FY21. World Bank Chief Economist (South Asia region) Hans Timmer and Country Director for India Junaid kamal Ahmad tell Indivjal Dhasmana about the situation created by Covid-19. Edited excerpts:

Why has the World Bank given a huge range of 1.5 per cent to 2.8 per cent for India’s GDP growth projection for FY21?

Timmer: Although the outlook has worsened significantly, it is not easy to determine the magnitude of that deterioration. Given the unparalleled uncertainty, this