![]() ![]() It aims to work with India so that the country’s rapidly growing economy makes much more efficient use of resources fosters inclusiveness by investing in human capital and generating more quality jobs and develops strong public sector institutions that are capable of meeting the demands of a rising middle-class economy. The CPF’s approach combines a focus on ‘what’ the WBG will work on and ‘how’ it will engage India in the process. The CPF builds on the decades-long partnership and seeks to address the country’s development aspirations and priority needs identified in the Group’s Systematic Country Diagnostic for India. The WBG’s present engagement with India is guided by its Country Partnership Framework for FY18-22 (CPF). In FY18, the relationship reached a major milestone when India became a low middle-income country and graduated from International Development Association financing. #FACEBOOK GROWTH TO DECELERATE SIGNIFICANTLY MANDATES SERIES#International Development Association – the WBG’s soft-lending arm created for developing countries like India - has supported activities that have had a considerable impact on universalizing primary education empowering rural communities through a series of rural livelihoods projects revolutionizing agriculture through support of the Green and White (milk) Revolutions and helping to combat polio, tuberculosis, and HIV/AIDS. Since the first loan to Indian Railways in 1949, the WBG’s financing, analytical work, and advisory services have contributed to the country’s development. ![]() ![]() The World Bank Group’s (WBG) over seven decade-long partnership with India is strong and enduring. Thanks in part to these proactive measures, the economy is expected to rebound - with a strong base effect materializing in FY22 - and growth is expected to stabilize at around 7 percent thereafter. In response to the COVID-19 shock, the government and the Reserve Bank of India took several monetary and fiscal policy measures to support vulnerable firms and households, expand service delivery (with increased spending on health and social protection) and cushion the impact of the crisis on the economy. In FY21, the economy contracted by 7.3 percent. Between FY17 and FY20, growth decelerated from 8.3 percent to 4.0 percent, with weaknesses in the financial sector compounded by a decline in the growth of private consumption. The World Bank is partnering with the government in this effort by helping strengthen policies, institutions, and investments to create a better future for the country and the people through green, resilient an inclusive development.Īfter growing at very high rates for years, India’s economy had already begun to slow down before the onset of the COVID-19 pandemic. To build back better, it will be essential for India to stay focused on reducing inequality, even as it implements growth-oriented reforms to get the economy back on track. A national lockdown to contain the health emergency was complemented by a comprehensive policy package to mitigate the impact on the poorest households (through various social protection measures) as well as on small and medium enterprises (through enhanced liquidity and financial support). The response of the government to the COVID-19 outbreak has been swift and comprehensive. Labor market indicators suggest that urban households are now more vulnerable to fall into poverty than they were before the onset of the pandemic. As in most countries, the pandemic has exacerbated vulnerabilities for traditionally excluded groups, such as youth, women, and migrants. The informal sector, where the vast majority of India’s labor force is employed, has been particularly affected. ![]() Recent projections of GDP per capita growth, taking into account the impact of the pandemic, suggest that poverty rates in 2020 have likely reverted to estimated levels in 2016. The economic slowdown triggered by the outbreak is believed to have had a significant impact especially on poor and vulnerable households. Successful implementation of agriculture and labor reforms would boost medium-term growth, while weakened household and corporate balance sheets may constrain it. The pace of vaccination, which is increasing, will determine economic prospects this year and beyond. Following the deadly ‘second wave,’ growth in FY22 is expected to be nearer to the lower bound of the range of 7.5 to 12.5 percent – still putting India among the fastest growing economies in the world. However, the COVID-19 pandemic led India’s economy into a contraction of 7.3 percent in FY21, despite well-crafted fiscal and monetary policy support. Between 20, more than 90 million people were lifted out of extreme poverty. Since the 2000s, India has made remarkable progress in reducing absolute poverty. ![]()
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