India in ‘Technical Recession’ for 1st Time in Historical past, Says RBI in ‘Nowcast’; July-Sept GDP to Contract 8.6%

News18 Logo

Image for representation.

Picture for illustration.

The central financial institution has ‘nowcast’ that Gross Home Product (GDP) for the July-September quarter is about for a contraction of 8.6 p.c.

  • News18.com
  • Final Up to date: November 12, 2020, 12:14 IST
  • FOLLOW US ON:

For the primary time in historical past, India’s economic system has entered a “technical recession” within the first half of 2020-21, a group of economists, together with Michael Patra, Reserve Financial institution of India’s deputy governor in control of financial coverage, said.

In accordance with the economists, the economic system shrank for the second straight quarter. The federal government had in August reported a 23.9 p.c contraction in its Gross Home Product (GDP) for the April-June quarter. The central financial institution has ‘nowcast’ that Gross Home Product (GDP) for the July-September quarter is about for a contraction of 8.6 p.c.

‘Nowcasting’ is the prediction of the current or the very close to way forward for the state of the economic system.

“India has entered a technical recession within the first half of 2020-21 for the primary time in its historical past,” the economists wrote. The federal government is because of publish official statistics on November 27.

Moody’s have additionally revised India’s 2020 GDP goal. In accordance with them, a decline of 8.9% is predicted now as towards the earlier forecast of 9.6%.

The median forecast in a Bloomberg survey of economists sees a contraction of 10.4% within the July-September quarter.