The Organisation for Economic Co-operation and Development (OECD) has on Wednesday brought down its growth forecast for India from 9.7% estimated earlier to 9.4% for FY22.
The OECD has also maintained that the ongoing economic recovery is gaining traction, supported by progress in vaccination, which is boosting consumer sentiment.
OECD is a 38-member intergovernmental organization that discusses and develops economic and social policy
In September, while paring India’s FY22 growth projection from 9.9% to 9.7%, the Paris headquartered OECD had cited still persisting risk of lasting costs from the pandemic.
OECD has projected the Indian economy to grow at 8.1% in FY23, and moderate to 5.5% in FY24.
According to OECD, low-skilled domestic migrants and urban workers, who faced the brunt of employment shocks in both waves of the pandemic in India, have yet to see their earnings return to pre-pandemic levels.