World Bank: India is expected to grow at 1.5% to 2.8%

On April 13, 2020, the World Bank released its report “South Asia Economic Focus”. According to the report, the Indian Economy is expected to grow at 1.5% to 2.8%.

Key Highlights of the report

The report says that India’s growth rate is to be the lowest since its balance of payment crisis in 1991. Earlier, the bank projected India’s growth rate as 6.1%. However, in the coming years the growth rate is expected to be 4% to 5%.

Also, the report predicts that the COVID-19 crisis might dampen the efforts of the country to reduce poverty. In 2015, the poverty was estimated to have declined by 13.4%.

Migrants

According to the report, there are 120 million migrants in the country. The top three districts that are sending the work forces of the country are west Tripura, West Imphal and Solapur of Maharashtra.

Growth Predictions

The Moody’s had earlier predicted India’s growth to be around 2.5%. The Fitch rating fixed India’s Growth rate at 2%. The Asian Development Bank had projected India’s growth rate to be 4%.

Suggestions

The World Bank suggests to focus on providing food to every citizen of the country. Also, it recommends temporary job programmes. The World Bank also recommends India to make suitable measures to prevent bankruptcies especially in small and medium enterprises.

Month: Current Affairs - April, 2020