coronavirus update indiaas on : 06 January 2021 10:04 GMT+5:30
India Now In Technical Recession,GDP Rebounds At -7.5%
On Thursday, RBI Governor Shaktikanta Das highlighted a stronger-than-expected recovery from the coronavirus-led lockdown, hinting at continued monetary policy support to revive the economy.
India Now In Technical Recession, GDP Rebounds At -7.5%
New Delhi: In the July-September period India's gross domestic product contracted 7.5 percent, as the economy rebounded from the record slump of 23.9 percent in the previous quarter due to the slowdown caused by the coronavirus pandemic.
Today's data confirms the economy's first technical recession which is the two consecutive quarters of the GDP contraction since 1996,when the country began quarterly records. The GDP reading for the second quarter of the current financial year is much better than the economist's forecasts of 8.8 percent in a poll by news agency Reuters.
10 Things to know abut the country's GDP
1- The economy is yet on track to register an overall contraction if 8.7 percent over the full year,which if that were to happen,would be its worst performance in more than four decades.
2- The latest data brings hopes of the recovery following thousands of job losses and the majority of the workforce staying indoor, in the aftermath of coronavirus related restriction.
3- As few states have re-imposed curbs this week to fight the second wave of infections, businesses feared the restrictions could slow the pack of recovery in the next two or three months.
4- There has a drop in the country's daily coronavirus case, which has tapered off to half of its peak of more than 97,000 infections a day in mid-September. In India coronavirus infection have crossed 9.27 million, making it the world's second most affected country after the US.
5- Many economists expect the economy to return to expansion mode as early as in the December quarter, as the pickup sustains.
6- The government recently announced the stimulus measures under its Atmanirbhar Bharat series of announcements.
7- As per the economists, the economy is expected to recover early next year in the hopes of better consumer demand fuelled by the progress on coronavirus vaccines.
8- Finance Minister Nirmala Sitharaman under Atmanirbhar Bharat 3.0, listed measures worth ₹ 2.65 lakh crore with a focus on job creation and sectors such as real estate, taking the total monetary and fiscal aid the country's battle against coronavirus.
9- The RBI Governor Shaktiknata Das on Thursday highlighted a stronger than expected recovery from the coronavirus-led lockdown, hinting at continued monetary policy support to review the economy.
10- The RBI has been doing the heavy lifting on providing stimulus to the economy, having lowered the key benchmark rates by a total of 115 basis points (1.15 percentage point) so far in this calendar year.