Michael Patra, the deputy governor of the RBI who is in charge of the monetary policy, addressing a media conference along with other economists said that India has entered a historic technical recession. India’s GDP figures had contracted by 8.6% in the quarter ending September, adding that the economy had declined by 24% in April to June.
“India has entered a technical recession in the first half of 2020-21 for the first time in its history. Lurking around the corner is the third major risk – stress intensifying among households and corporations that have been delayed but not mitigated, and could spill over into the financial sector,” the panel of economists said. Meanwhile, the official statistics would be out on November 27th.
Reacting to the statement made by the Economists, Congress’s Rahul Gandhi tweeted, “India has entered into recession for the first time in history. Mr Modi’s actions have turned India’s strength into its weakness.”
