India’s economy presumably shrank for a subsequent straight quarter, as per a group of market analysts including Michael Patra, RBI’s deputy governor in charge of monetary policy, pushing the country into an unprecedented recession.
According to the Reserve Bank of India’s, “nowcasting”, India’s economy will contract by 8.6% in the second consecutive quarter (July, August, September) of the current financial year which means the economy is in a ‘technical recession’. The economy went down by almost 24% in the first fiscal quarter.
India has entered a technical recession in the first half of 2020-21 for the first time in its history. The government is due to publish official statistics November 27. In simpler words, a technical recession is two quarters in a row of economic contraction.
The key determinant for any economy to come out of recession is to control the spread of Covid-19. Also what the government can do is to spend money adequately to construct infrastructure so as to generate the need for production of raw materials necessary to build the infrastructure. This would also provide jobs to skilled as well as unskilled people, thus helping economy to grow.
Checkout more such content at: https://gogomagazine.in/category/social/