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GDP shrank 8.6% in Q2 pushing economy into recession: RBI

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    12th Nov, 2020


  • The index casts the GDP growth at (-) 8.6% in Q2, implying that India is likely to have entered a technical recession in the first half.
  • According to the estimates of National Statistical the GDP in April-June declined to an
  • India’s economy rebounded sharply in the wake of the reopening from lockdowns, slowing the pace of its contraction to 8.6% in the second quarter of the current fiscal year.
  • The decline for two consecutive quarters is pushing economy into recession.

What risks exist against the recovery?

  • Unrelenting pressure of inflation despite imports
  • Second Covid-19 wave hurting global growth
  • Intensifying stress amongst households, corporate

When the recession is said to exist?

  • In economics, when the GDP growth rate is negative for two consecutive quarters or more, it is termed recession

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