GDP figures for the July-September quarter will be released today, for the first time the economic downturn fears
The National Statistical Office (NSO) is going to release GDP figures for FY 2020–21 today. These GDP figures are eagerly awaited by the government and the stock market to the entire economic world. Let us tell that in the April-June quarter, there was a historic decline in the country’s gross domestic product. The GDP growth rate was recorded at -23.9 percent in the first quarter. Talking about the big economies, it was the worst performer after the US.
After negative growth in the April-June quarter, if the data released today also shows negative growth, the country will be in the grip of economic recession for the first time. The definition of the economic slowdown is that if a country’s economy shows negative growth for 2 consecutive quarters, then that country is considered to be stuck in an economic slowdown.
However, economists and other experts are expecting a faster recovery in the economy this time. RBI has forecast that the Indian economy may decline by 9.5 percent in the financial year 2020-21. Reserve Bank of India (RBI) Governor Shaktikanta Das said on Thursday that the Indian economy has rebounded more than expected after the nationwide lockdown due to the coronavirus epidemic. He said that there is still a risk of declining growth in India as well as in the whole world. He said that although the growth outlook has improved, the downside risk for growth is still sustained due to the recurrence of coronavirus infection in parts of Europe and India.
Nilesh Shah, a part-time member of the Prime Minister’s Economic Advisory Council (PMEAC), said on Tuesday that the decline in the gross domestic product (GDP) in the September quarter of the current fiscal year will be lower than the first quarter and may remain in the upper-level single digits. Shah said that the market is set to gain in the long run.”There was a 23.9 percent drop in the June quarter,” Shah said. This was the biggest decline so far. GDP is expected to fall in the September quarter as well, but will be in single digits above the double-digit mark. At the same time, the decline in the October-December quarter will be less and the GDP growth rate should be positive in the January-March, 2021 quarter. ”
Historical decline in the April-June quarter
India’s GDP growth declined more than expected in the April-June quarter of FY 2021. The GDP growth rate was recorded at -23.9 percent in the first quarter. Talking about big economies, this is the worst performer after the US. For the first time in the last 40 years, the Indian economy had seen such a huge decline. In fact, due to the Corona epidemic, there was a complete lockdown of 2 months across the country, causing economic activity to come to a complete standstill. Explain, the government announced a nationwide lockdown from March 25 to prevent infection of the coronavirus epidemic. The Indian economy grew at a rate of 6.1 percent in the financial year 2018-19. Whereas in 2019-20, the growth rate of the economy was 4.2 percent.
