Amid the COVID-19 pandemic, as the nation went under lockdown for over two months, and people were urged to stay home whenever possible, India’s GDP growth too suffered. At the end of August this year, data from the National Statistical Office showed that India’s GDP shrank by 23.9% in the April-June period of this year – the steepest ever decline.
“GDP at Constant (2011-12) Prices in Q1 of 2020-21 is estimated at Rs 26.90 lakh crore, as against Rs 35.35 lakh crore in Q1 of 2019-20, showing a contraction of 23.9 percent as compared to 5.2 percent growth in Q1 2019-20,” the Ministry of Statistics and Program Implementation (MOSPI) had said in a press note.
In end-October Finance Minister Nirmala Sitharaman had said that while the economy was reviving, GDP growth may be in negative zone or near zero in the current fiscal. She had cited the April-June contraction while stating the same.
But recent updates indicate that the economic recovery may take far longer than anticipated. As per reports that quotes the RBI’s first ever published ‘nowcast’, GDP contracted 8.6% in the quarter ended September.
According to the team of economists, the Indian economy shrunk for the second straight quarter, pushing the country into an unprecedented recession.
“India has entered a technical recession in the first half of 2020-21 for the first time in its history,” the authors wrote.
Since then, the news has evoked a strong reaction from Opposition leaders.
Congress MP Rahul Gandhi shared the news clipping to lash out at the PM Modi led government over the same. “India has entered into recession for the first time in history. Mr Modi’s actions have turned India’s strength into its weakness,” he tweeted.
“First time in 70 years. RBI has admitted that India has entered recession. When will the PM? Or is it still ‘Sab Changa Si’?” asked Congress social media Convenor Ruchira Chaturvedi.