According to a CNN Business study published on Tuesday, India’s economy could boom back to life in 2021, allowing the country to regain its position as the fastest-growing major economy, if the OECD’s prediction of 12.6 percent GDP growth is realised.
For the first time in almost a quarter-century, India’s economy is in decline. However, in the last three months of 2020, it had a 0.4% increase in GDP, ending the slump. According to the report, the Indian economy will contract by around 7% in 2020.
According to a projection published Tuesday by the Organization for Economic Cooperation and Development, India’s gross domestic product is expected to grow by 12.6% in the fiscal year beginning in April.
“If that degree of growth is achieved, India will retake its position as the world’s fastest-growing major economy, displacing China, which the OECD expects to rise at 7.8% this financial year after avoiding a downturn in 2020,” according to the survey.
On Tuesday, the OECD updated its global forecast, stating that “business conditions have changed markedly in recent months” as a result of the deployment of coronavirus vaccines and subsequent policy updates.
According to CNN Business, the Paris-based agency also reported that new containment policies were not harming the economy as badly as previous initiatives.
The OECD said in the paper, “This could represent more diligent targeting of public health programmes and income support.”