The country is heading towards a recession, The economic downturn risk has not been cut yet ,Statement by Deputy Governor RBI Michael Potter
|For the first time in the country’s history, India is in recession in the first half of the 2020-21|
Special Report-: The state of the economy has been bad for the past few years. Due to the lockdown, there was a lot of noise in the country. The wheel of financial activity was closed across the country. Even in the second quarter of the current financial year, the country’s financial situation is probably not returning. Deputy Governor Michael Potter, who is in charge of the RBI’s monetary policy, said the state of the economy was leading the country to a more unprecedented recession.
[Former governor of Reserve Bank of India Raghuram Rajan on Wednesday said that if India does not create enough jobs, youths will come to the streets (in protest) ]
The country’s central bank’s first ‘nocast’, based on advanced data, showed that fiscal growth could shrink to 8.6 percent in September. The economy contracted 24 percent in the April-June quarter. “For the first time in the country’s history, India is in recession in the first half of the 2020-21 fiscal,” the RBI said in a statement. The government will release the official statistics report on November 27.
However, during the festive season, there is a glimmer of hope for the economy. Despite the decline in sales, the operating profit of various companies has increased due to cost reduction. The bank’s cash volume, car sales figures are showing positive indications in October. Last month, RBI Governor Shaktikant Das said the economy would turn around ahead of schedule.
However, economists wrote in an RBI bulletin that there was a risk of credibility due to inflationary pressures and interference in monetary policy to control unpredictable inflation. In their view, the second phase of the Corona will have a major impact on global economic growth. That risk will have an equal impact on the Indian economy. Various organizations and the general public are still apprehensive. It will have an impact on the financial sector. Overall, economists say, “We are in a challenging time.”