India’s economy is likely to have shrank for a second consecutive quarter, signalling the first-ever ‘technical recession’ in the country’s history. A team of economists including Michael Patra, the Reserve Bank of India’s deputy governor in charge of monetary policy, have stated the same in the central bank’s first-ever ‘nowcast’.
Nowcast is a prediction based on high-frequency data about the future state of the economy. The economists have written that the Gross Domestic Product (GDP) contracted 8.6 per cent in the quarter ended September (second quarter), following the near 24 per cent slump in the first quarter of the year.
“India has entered a technical recession in the first half of 2020-21 for the first time in history,” said the economists. Official statistics will regarding the same will be published by the government on November 27.