India’s economic growth is likely to accelerate to 12.6 per cent in 2021-22, making it the fastest-growing economy in the world, the Paris-based Organisation for Economic Co-operation and Development (OECD) has said in its latest interim economic outlook report.

According to the OECD, India’s approach of expediting vaccine production and rollout is the best economic policy for boosting growth and job creation in the current situation. 

The OECD, an organisation which includes the advanced western nations and Japan, states in the report that “activity moved above pre-pandemic levels in China, India, and Turkey, helped by strong fiscal and quasi-fiscal measures and a recovery in manufacturing and construction.”

“The recovery in activity continued in the fourth (December) quarter of 2020, despite new virus outbreaks in many economies and tighter containment measures. Global output remained around 1 per cent lower than prior to the pandemic, with marked variation in the pace of recovery across economies,” the OECD report said. It said coronavirus vaccine production in the country is “super encouraging”, but deployment speed will be critical for recovery.

The report expects India’s GDP to contract 7.4 per cent for the current financial year ending on March 31, 2021, against the December 2020 projection of 9.9 per cent shrinkage.