India enters into technical recession for first time: RBI Report

Mumbai, November 12

India has technically entered into a recession with a likely contraction in its GDP during the July-September period, according to a report by the Reserve Bank of India (RBI).

RBI’s Economic Activity Index estimates that India’s GDP growth for the second quarter of the current financial year was negative and the GDP contracted by 8.6 per cent during 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,” it said.

The contraction is ebbing with gradual normalisation in activities and expected to be short-lived.

The RBI report said that at a time when global economic activity is besieged by the outbreak of the second wave of Covid-19, incoming data for the month of October 2020 have brightened the near-term outlook for the Indian economy and stirred up consumer and business 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 said.

–IANS



Disclaimer: This post has not been edited by our staff and is published from a syndicated feed. The Original Source of this post can be found at Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest

No new COVID-19 cases in Dharmapuri, Kallakurichi

Six districts in Tamil Nadu record one fresh case each; five more deaths push the toll to 12,493 As...

Join hands to show new direction: Rahul

Congress leader Rahul Gandhi on Saturday called upon the people of Tamil Nadu to join hands with him in salvaging the State from rampant...

Change of government imminent in Tamil Nadu, says Brinda Karat

It is undeniable that there is going to be a change of government in Tamil Nadu and the people have been waiting for the...

Next phase first in taluk, district, 79 private hospitals

All aged above 60 and above 45 with specified comorbidities to be covered from Monday The next phase of COVID-19 vaccination for those aged above...

Power unit’s water discharge into beach threatening marine life, allege fisherfolk

Residents and fishermen in and around Yermal near Padubidri in Udupi district have said the Udupi Power Corporation Ltd., (UPCL) of Adani Group has...

More Articles