Big tweak: Indian economy can't get out of recession again this year: Reuters Poll

New Delhi, 28 August 2020 Friday

The downturn in the Indian economy has already been exacerbated by the Corona crisis, followed by the Covid-19 outbreak, which is expected to continue till the end of this year. According to a Reuters poll, the situation has worsened in the country due to the Corona virus outbreak and a decline in consumption and business activities.

Prime Minister Modi's government has announced an incentive package of Rs 20 lakh crore to improve the economic situation, which has worsened due to the Koro crisis. The Reserve Bank of India has cut interest rates by 1.15 per cent, or 115 basis points, since March. It is clear that the government still has a long way to go to save the country's economy from the effects of the global epidemic.

India is currently experiencing a faster transition than any other country in the world, with more than 3.3 million corona positive patients registered in the country so far. More than 60,000 of them have died, millions are trapped in their homes to escape the onslaught, millions have lost their jobs in the world's most populous country, and millions have lost their jobs.

Prakash Sakpal, a senior economist at ING, says the crisis may have had the least impact, but based on new cases of rapid transition during the quarter, the country's economy is unlikely to recover in a few months, given public finance and rising inflation, macro policy. Can be rubbish. This literally means that the steps taken to help the economy recover in the extended times of this year will be inadequate.

According to a Reuters poll of 50 leading economists, the Indian economy could shrink by 18.3 per cent in the last quarter, up from 20 per cent in the previous quarter. Although the situation is very good, this will be the lowest rate ever given the official reporting for the quarterly data started in the mid-1990s.