GDP contracts to 8.6% in Q2 pushing economy to recession
12 nov 2020
Indian Economy has sharply contracted to 8.6% in the second quarter after reopening of lockdowns. This report has been released by RBI.
Still, the estimate implies that 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, wrote an RBI official who authored an article in the bulletin.
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,” Pankaj Kumar of the RBI’s Monetary Policy Department wrote in the article titled ‘An Economic Activity Index for India’.
Observing that “the unrelenting pressure of inflation” was the foremost risk, the RBI warned that a hit to external demand from the second wave and financially stressed households and companies could also undermine the recovery