Targeting the BJP-led government in the centre over the continuous downturn in the economy, Rahul Gandhi blamed it on “Mr Modi’s Actions”.
New Delhi| Congress leader Rahul Gandhi today slammed the Centre over the recent report published by the Reserve Bank of India predicting a further drop in India‘s GDP. In a first-ever ‘Nowcast’ published by the RBI, it also warned that India is in a “historic technical recession”.
Targeting the BJP-led government in the centre over the continuous downturn in the economy, Rahul Gandhi blamed it on “Mr Modi’s Actions”. “Mr Modi’s actions have turned India’s strength into its weakness,” he said.
India has entered into recession for the first time in history.
Mr Modi’s actions have turned India’s strength into its weakness. pic.twitter.com/Y10gzUCzMO
— Rahul Gandhi (@RahulGandhi) November 12, 2020
On the other hand, Congress leader Jairam Ramesh said that the foundations for this were of course laid well before the COVID-19 pandemic.
So now RBI has made it official. India is in recession, which means two consecutive quarters of GDP contraction. The foundations for this were of course laid well before the COVID-19 pandemic. pic.twitter.com/I4UqBpZ4Pb
— Jairam Ramesh (@Jairam_Ramesh) November 12, 2020
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 GDP 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.
The situation likely to improve if the October trend continues
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.