RBI Official Says India to Enter Recession for the “First Time”, GDP to Contract 8.6%

In the second quarter of the fiscal year, India is all set to hit its lowest GDP in years with a contraction of almost 8.6 percent. India is likely to hit recession for the first time, says RBI official.

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RBI Official Says India to Enter Recession for the “First Time”, GDP to Contract 8.6%.the policy times

The lockdown amidst the pandemic has hit the world economy to a greater extent. India has also suffered a lot due to it as it faced a lockdown period of almost 7-8 months. Now, that people are slowly crawling back to their normal lives with the lockdown being lifted, the economic crisis still persists. In the middle of the pandemic, the nation also fears a recession period that is going to hit us hard.

Covid has hit us hard

Since the onset of covid 19 in India and the implementation of the lockdown from the month of March-April, the common people have been suffering a lot. Not only are they in fear of their lives but they are also facing economic crises at many levels. As compared to the April-June quarter, the fall in GDP rate has been a whopping 23.9 percent. According to the predictions by RBI, it is going to contract by 9.5% more in the full fiscal year. If it is to be believed then we have to be ready to face more challenges in the years to come.

But the stats are improving

Even though we are facing hard times, hope still remains high. India is hit by the recession as said by RBI but our PM is hopeful of boosting the economy by 2024. Also, the household savings rates have increased in the current fiscal year which throws some positive light on our economic growth rate. If this growth rate continues then maybe the statistics would improve and we will be able to come out of recession in a few fiscal quarters.

Also read: Impact of Corona Huge on Youth; Lost Jobs Linked to Depression

Normalization will take time

We are in the middle of a pandemic that has hit the world massively. Not only Indians but people from every corner of the world are suffering in one form or the other. Thus, if we think that everything will become normal soon then we will be lying to ourselves. Things will take time to become normal. The GDP of India will surely increase, but not so certainly! We have to wait for the right time to be able to declare India as a powerful economy. The government needs better plans and policies to come out of this economic crisis. Hopes are high and surely better days are coming.

The PolicyTimes suggestion

  • The Indian government and the RBI must think of ways through which the economy can be boosted. Providing loans at low rates, managing the employment sectors, focusing on rural developments are some of the solutions for the same.
  • The economy must be controlled as soon as possible, otherwise tough times are coming. The ones that are in a powerful monetary position must look out to the fact that they need to balance the economy. The common people must also contribute to the same by creating more employment and focusing on agriculture a little more.

Also read: India’s GDP on Record Fall; On the Verge to Snoop Low Even below Bangladesh

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RBI Official Says India to Enter Recession for the “First Time”, GDP to Contract 8.6%
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In the second quarter of the fiscal year, India is all set to hit its lowest GDP in years with a contraction of almost 8.6 percent. India is likely to hit recession for the first time, says RBI official.
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THE POLICY TIMES
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