India has officially entered a phase of recession, with GDP data released showing a collapse of 23.9 per cent of gross domestic product in the second quarter, as the Indian economy was weighed down by the coronavirus pandemic and the severest of lockdowns that led to halt in business activities and a sharp fall in consumer demand.
The National Statistical Office (NSO) said GDP contraction in the April-June period of FY21 was the largest slump on record since India started reporting quarterly data in 1996. The fall in output compares to 3.1 per cent growth in the previous quarter, which was the worst performance in at least eight years.
Reacting to the GDP slide, senior Congress leader and Former Finance Minister P Chidambaram in a tweet wrote, Of the world’s major and advanced economies, India’s economy declined more than any other country’s except the economy of the United States. What does that tell us? That Mr Modi stands second only to Mr Trump in terms of incompetent economic mismanagement.
Of the world’s major and advanced economies, India’s economy declined more than any other country’s except the economy of the United States.
What does that tell us? That Mr Modi stands second only to Mr Trump in terms of incompetent economic mismanagement.
— P. Chidambaram (@PChidambaram_IN) August 31, 2020
The record slump may be directly attributed to the unprecedented slowdown in the economy fuelled by coronavirus, although the slowdown precedes the pandemic. With a record 78,761 new cases added Sunday and total infected topping 35 lakh, India’s road to recovery appears a long and hard one.
This is the sharpest contraction since the nation started publishing quarterly figures in 1996, and is worse than any of the G20 nations.
