In the Indian economy, the GDP continued to decline for the second consecutive quarter, due to which India has fallen into a ‘technical’ economic recession for the first time in its history.
India’s GDP could be around 8.6 percent negative in the second quarter, meaning the economy will once again see a big loss, the Reserve Bank estimates based on specific data.
It should be clear that in the last quarter the GDP had decreased by about 24%. Technically, if an economy remains in the negative zone for two consecutive quarters, then the economy is assumed to be in recession.
In its latest report, RBI said that the decline in GD continued in the second quarter of July and September and it fell to 8.6%.
According to the RBI, if the GDP remains negative in the second quarter after a large negative growth in the first quarter, we will officially be in a historic recession.
This is the first time in India’s history that GDP has been negative for two consecutive quarters in a fiscal year.
According to economists, when the GDP rate becomes negative for two or more consecutive quarters, this situation is called economic recession.
Economist and RBI Deputy Governor Michael Petra says that the country is heading towards an extraordinary recession. During the quarter ended September, the GDP fell by negative 8.6 percent, while in the first quarter from April to June, the GDP fell by negative 24 percent.
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