The World Bank, in its Global Economic Prospects for January 2021, projected that India's economy will decline by - 9.6% in FY2020-21.
However, the country's economy will grow by 5.4% in the next fiscal year, which will be highest in South Asia, according to the World Bank report.
Earlier, Reserve Bank of India (RBI) also said India's growth forecast for FY21 as the coronavirus pandemic has disrupted economic activities, so their GDP growth will remain in the negative territory, -7.5 per cent in the year ending March 31, 2021. The bank also hoped that the growth would pick up in the second half.
Severe production losses have been caused by the Covid-19 pandemic and have led to a sharp increase in South Asian poverty and unemployment this year.
In 2020, production in the area fell by an estimated 6.7%, reflecting the effects of the pandemic and national lockdowns, especially in Bangladesh and India. As initial strict lockdowns were relaxed, activity rebounded in the second half of last year, led by industrial production.
The analytical sections of the new Global Economic Prospects study also predicted a growth of 5.4% in FY2021/22.