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India faces huge challenges of integrating more into formal sector economy: World Bank President

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The World Bank has projected the Indian economy to grow at 8.3 percent this year

The Indian economy, hit by the COVID-19 pandemic, is now in recovery mode and the World Bank welcomes it, its president David Malpass said on Wednesday. Malpass also said that India, which is facing great challenges of integrating more people into the formal sector economy and increasing people’s earnings, has made some progress but it is not enough.

“Indians were hit hard by the waves of COVID and it is unfortunate. They responded with huge production of vaccines and progress has been made in the vaccination effort. But we have to recognize the impact it has had on the Indian economy and especially on the informal sector of the Indian economy,” Malpass told reporters here.

Last week, the World Bank had projected the Indian economy to grow at 8.3 per cent this year. He also said that India, like other countries, is now facing supply chain disruptions due to COVID-19. “The Indian economy is recovering, and we welcome it. It’s getting to the other side of the latest wave of COVID. It’s a good thing. But India, like other countries, is now badly affected by supply chain disruptions and rising inflation in the world,” Malpass said in response to a question.

“I am giving the general mixed view that progress has been made, but not enough. India is facing huge challenges of integrating more people into its economy and increasing people’s earnings in the formal sector economy,” he said. He said that the Government of India is focused on this.

Malpass said he visited India at the end of 2019 and saw the changes being made there that were quite positive, looking for ways to improve the banking system, financial system, civil service system and clean water in India. The situation which is very important for child nutrition to improve nutrition in India. He said that clean water is one of the most important starting points for life. “I mentioned that this is a big, big challenge for the largest democracy in the world,” Malpass said.

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