World Bank sees higher GDP fall in India than 3.2% it projected for FY21

Cautions against using tariff policy to attract firms from China; says there is credit risk as economy slows and half India's population may fall back into poverty

The World Bank on Wednesday said it was likely to project a steeper contraction in India’s economy than the 3.2 per cent it had forecast for the current financial year, given the rising number of Covid-19 cases and the resultant regional lockdowns. 

It cautioned India against using its tariff policy to attract firms seeking a shift away from China. 

In its report on India Development Update, 2020, it also warned that credit risks could play out as firms and households find it more difficult to service interest and repayment obligations. It called for full privatisation of some public sector banks and private