According to some officials of the Reserve Bank of India, for the first time in the history of India, there has been a recession. According to their report, GDP is negative even in the second quarter. Let’s know what it means and why it is a matter of great concern?
According to a research by Reserve Bank officials, India’s GDP growth in the July-September quarter has been 8.6 per cent, which means the GDP has fallen by 8.6 per cent. However this is not an official figure and the figures are yet to be released by the government. Earlier in the first quarter of this financial year, there was a huge decline of about 24 percent in GDP.
Lockdown caused by the Corona crisis has worsened the economy. However, it has now shown signs of improvement and the Finance Ministry says that GDP growth could be positive in the third quarter. As soon as this news comes, the leaders of the opposition including Rahul Gandhi have started attacking the Modi government and it is being told the result of the weakness of the government.
What is recession?
According to the accepted definition in the economy, if the GDP of a country remains in the negative for two consecutive quarters, that is, it falls instead of growth, then it is considered as a condition of recession. According to this, if India’s GDP is really negative in the second quarter, then it can be said that there has been a slowdown in the country.