The new wave of COVID-19 infections sweeping parts of India is "worrisome" and threatens the 12.5 per cent growth projection, an International Monetary Fund expert for the region said on Tuesday. Jonathan Otry, the Deputy Director of the IMF's Asia Pacific Department, said that "the current surge in infections presents a worrisome downside risk revisions" for India which "has seen a more sizeable upward revision to 12 and a half per cent on account of continued normalisation of its economy and a more growth-friendly fiscal policy".

In projections made before the current spike in COVID-19 cases and released last week, the IMF had raised its estimate of India's gross domestic product (GDP) growth by 1 per cent from the January projection to the historically high rate of 12.5 per cent -- the highest in the world for large economies -- during this fiscal year. The growth was projected to moderate to 6.9 per cent next fiscal year.