SunstarTV Bureau: India’s Gross Domestic Production (GDP) has shrunk to 8.6 per cent in the second quarter -for July-September period, pushing the country into a recession for the first time, as per Reserve Bank of India (RBI).
The pandemic driven lockdowns had led to a steep contraction of 23.9 per cent in the GDP for the April-June quarter as compared to the same period a year ago.
While the economy was showing deliberate hike with unlocking of the nation, contradiction has been noticed in Q2, a ‘nowcast’ in the RBI’s monthly bulletin showed on Wednesday.
“The index nowcasts GDP growth at (-) 8.6% in Q2, implying that India is likely to have entered a technical recession in the first half,” stated Pankaj Kumar of the RBI’s Monetary Policy Department in the article with title ‘An Economic Activity Index for India’.
According to the estimation India is likely to have entered a technical recession in the first half of 2020-21 for the first time in its history with two successive quarters of GDP contraction, averred the article.
“At a time when global economic activity is besieged by the outbreak of the second wave of COVID-19… data for the month of October 2020 have brightened the near-term outlook for the Indian economy and stirred up consumer and business confidence,” the RBI noted. “There are, however, formidable downside risks that confront the path of recovery,” it added.