India Is Going into Historic Recession with GDP to Shrink by 8.6%

World | November 12, 2020, Thursday // 15:09| Views: | Comments: 0
Bulgaria: India Is Going into Historic Recession with GDP to Shrink by 8.6%

The fifth largest economy in the world is set to contract for the second consecutive quarter, dragging the country into an unprecedented recession, according to a forecast by the Indian national central bank.

Gross domestic product (GDP) shrunk 8.6 per cent in the quarter ending in September, the Reserve Bank of India said after reviewing high-frequency data to gauge economic activity.

India’s economy tanked 23.9 per cent between April and June, the worst-ever quarterly decline, after the coronavirus lockdown brought economic activity to a halt and rendered millions of people jobless. India’s financial year runs from April to March.

“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,” the RBI said in a bulletin posted on its website late on Wednesday.

However, the forecast, based on an Economic Activity Index for India from 27 monthly indicators, pointed out that the economy was making a quick recovery.

“The index suggests that the economy rebounded sharply from May/June 2020 with the reopening of the economy, with industry normalizing faster than contact-intensive service sectors, pointing to a short-lived contraction,” it said.

The government will publish second quarter GDP data on November 27.

Finance Minister Nirmala Sitharaman has prepared an economic stimulus package, with a focus on job creation, domestic media reported.

India has the world’s second-largest caseload after the United States, with more than 8.6 million coronavirus cases registered so far. On Thursday, it reported 47,905 fresh cases and 550 deaths within 24 hours./DPA

We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!

World » Be a reporter: Write and send your article
Advertisement
Advertisement
Expats.bg All Are Welcome! Join Now!
Bulgaria news Novinite.com (Sofia News Agency - www.sofianewsagency.com) is unique with being a real time news provider in English that informs its readers about the latest Bulgarian news. The editorial staff also publishes a daily online newspaper "Sofia Morning News." Novinite.com (Sofia News Agency - www.sofianewsagency.com) and Sofia Morning News publish the latest economic, political and cultural news that take place in Bulgaria. Foreign media analysis on Bulgaria and World News in Brief are also part of the web site and the online newspaper. News Bulgaria