New Delhi: The Organisation for Economic Cooperation and Development (OECD) claimed that India would emerge as the fastest growing economy globally, with a growth rate of 12.6%. A few months ago, this institute had predicted that the Indian economy would grow at 7.9% during the year 2021-22. But the prediction has been revised. The government’s survey report released last month predicted a growth rate of 11%, and the Reserve Bank of India predicted a growth rate of 10.5%. Whereas CRISIL, the global credit rating institution, also revised their prediction regarding the Indian economy and predicted that the Indian economy would progress at 11% in the next financial year.
OECD has predicted that the Indian economy will emerge as the fastest growing economy of the world during 2021-22. There is no other country coming near this Indian growth rate. OECD has said in the report that the Chinese growth rate will be 7.8%, and the US economic growth rate will reach 6.5%. As per OECD, the global economy will progress at 5.6%.
The OECD had made major changes to the predictions made in December. The global economy was adversely affected by the Coronavirus pandemic. But now the vaccine is available for Coronavirus. The leading countries have also announced various packages to bail the economy out of the Coronavirus crisis, and efforts are being made to provide an impetus to the economy. As per OECD, the effects of these efforts are becoming visible. The Indian economy has been severely hit in the current year because of the Coronavirus pandemic. The Indian economic growth rate was negative. In the first six months of the pandemic, the growth rate had reached -7%. But there was positive growth in the third quarter. Analysts were saying that the Indian economy has recovered from the Coronavirus crisis. Against this background, many global credit rating institutions are changing the predictions regarding India.
OECD has taken cognisance of the increase in production, increasing demand and the measures taken by the government to strengthen the economy. In December, OECD had predicted a growth rate of 7.9% for the Indian economy. But now, there has been a change of 4.7% in the prediction.