If the research is to be believed, then the country has gone into an economic recession for the first time in history
Mumbai| The trend of an economic downturn in India continues with serious warnings about the country’s economic health coming out every day. In the latest, the Reserve Bank of India has warned of a drop in GDP. Moreover, for the first time ever, the RBI has also warned about a recession.
The lockdown intended to curb the spread of Covid-19 in India hit the Indian economy severely which was already passing through a slowdown. There appeared some uptick in the economic activity after the unlock began. However, the threat persisted.
A Reserve Bank of India (RBI) official said that the country’s gross domestic product (GDP) in the second quarter (July-September) of the current financial year is projected to decline by 8.6 per cent compared to a year ago. Thus, the country is engulfed in recession for the first time with GDP declining for two consecutive quarters. It was down by 23.9 per cent in the first quarter due to the pandemic and the impact of the lockdown.
RBI estimated 8.6 per cent fall
Government figures for the second-quarter GDP are yet to come, but researchers at the central bank have estimated the forecast to fall to 8.6 per cent in the September quarter using the immediate forecast method. The views of these researchers have been published in the RBI monthly bulletin released on Wednesday.
If the research is to be believed, then the country has gone into an economic recession for the first time in history
RBI has already projected that GDP could fall by 9.5 per cent in the current financial year. A study report prepared by RBI researcher Pankaj Kumar stated that India has technically gone into an economic downturn for the first time in its history in the first half of 2020-21.
The article, titled ‘Economic Activity Index’, an index of economic functioning, states that economic contraction is expected to occur for the second consecutive quarter. However, it also states that the rate of contraction is decreasing with activities gradually normalizing and the situation is expected to improve.
As an independent media platform, we do not take advertisements from governments and corporate houses. It is you, our readers, who have supported us on our journey to do honest and unbiased journalism. Please contribute, so that we can continue to do the same in future.
