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India could be back as the world’s fastest growing economy this year

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India could be back as the world’s fastest growing economy this year

After plunging into recession for the first time in nearly a quarter of a century, India’s economy should come roaring back to life in 2021.

India’s gross domestic product is projected to expand by 12.6% during the country’s fiscal year starting in April, according to a forecast released Tuesday by the Organization for Economic Cooperation and Development.

If that level of growth is realized, it would allow India to reclaim its status as the fastest growing major economy — stealing the title back from China, which the OECD expects will deliver growth of 7.8% this calendar year after dodging a recession in 2020.

India’s economy recorded a rise in gross domestic product of 0.4% in the final three months of 2020, ending its recession. For 2020 as a whole, the Indian economy contracted by about 7%.

The OECD also unveiled major upgrades to its global outlook on Tuesday, saying that “economic prospects have improved markedly in recent months” thanks to the deployment of coronavirus vaccines and additional stimulus announcements. The Paris-based agency also said there were signs that recent containment measures weren’t hurting the economy as much as earlier efforts.
“This may reflect a more careful targeting of public health measures and income support,” the group said, adding that businesses and consumers have adapted to the restrictions.

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