RECESSION HITS INDIA

YB WEB DESK. Dated: 12/1/2020 12:37:09 PM

Throughout the years of somewhat a prestigious history, India never witnessed a financial recession until this year. Being reported by numerous news, media outlets and announced by the RBI, the mystic Indian economy technically entered recession for the first time ever. Besides the people familiar with economics or similar fields, the average layman barely knows the word recession. What is it? Why is it such a mattering issue of primary concern for the economy? Recession is simply a significant slowdown or a prominent contraction of the economy and economic activities. A significant fall in spending generally leads to a recession. 2020 may be called a year of recession for various nations and rapidly growing economies like Brazil, Mexico, Canada, USA, UK and now the newly added republic to this list Is our very own Republic Of India. The opposition parties have charged towards blaming the current central government for this recession and rightfully so as it is the first time that India has entered recession besides the slow economic growth recorded over the past couple of years despite much efforts poured by the government. The present government has been criticised for misgovernance in the field of finance on numerous occasions particularly during its second tenure after entering office again in 2019. Though there is another side to this picture, entirely blaming the current government wouldn’t be fair in such a situation when a majority of the world suffers from the same. This recession triggered throughout various nations this year is called ‘COVID-19 recession’ due to obvious reasons and which has been almost unavoidable for most economies. However, some states managed to escape this recession, primarily the Communist state of China responsible for the origin and spread of Coronavirus, eventually spreading to emerge as a deadly pandemic claiming more than a million lives and economic losses endured by the entire world. It was shocking for the very least as no one expected a recession in the second quarter given positive signs in the market and the efficient progress showcased by various sectors primarily including the manufacturing sector. The economy shrunk by 7.5% in the July-September quarter which is a significant improvement from the March-May quarter when the economy slumped down by 23.9% mainly caused by the stringent series of lockdowns implemented at that time. Experts will keep an eye for the results of this quarter as it will be essential for predicting the near future of the Indian economy and tracking its overall recovery.

 

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