After two successive quarters of GDP contraction, India has technically entered into a recession with a probable contraction in its GDP throughout the July-September interval, in keeping with a report by the Reserve Bank of India (RBI). RBI’s Economic Activity Index estimates that India’s GDP progress for the second quarter of the present monetary 12 months was damaging and the GDP contracted by 8.6 per cent throughout the quarter.
“India has entered into a technical recession in the first half of 2020-21 for the first time in its history with Q2:2020-21 likely to record the second successive quarter of GDP contraction,” the report was quoted sa saying by information company IANS.
It nevertheless mentioned that the contraction is ebbing with gradual normalisation in actions and anticipated to be short-lived.
The RBI report mentioned that at a time when international financial exercise is besieged by the outbreak of the second wave of Covid-19, incoming information for the month of October 2020 have brightened the near-term outlook for the Indian economic system and stirred up client and enterprise confidence.
“Since the assessment of the performance of the Indian economy in the first half of 2020-21 that was presented in the Monetary Policy Report of October 2020, several developments point to a window of respite opening up and an unshackling of economic activity from the grip of Covid-19 as the festival season sets in,” it mentioned.
Soon after the report, Congress chief Rahul Gandhi focused the federal government over the state of the economic system, claiming the nation has entered into a recession because of the insurance policies of Prime Minister Narendra Modi.
“India has entered into recession for the first time in history. Mr Modi’s actions have turned India’s strength into its weakness,” he mentioned on Twitter.
India has entered into recession for the first time in historical past.
Mr Modi’s actions have turned India’s power into its weak spot. pic.twitter.com/Y10gzUCzMO
— Rahul Gandhi (@RahulGandhi) November 12, 2020
(With IANS inputs)