Eclipse of recession on the economy! These new figures are raising concerns for the government

New Delhi, 27 November 2020 Friday

GDP figures for the September quarter show that the Indian economy is clearly in recession. Although there has been a recovery compared to the June quarter, there is still a challenge for the government.

The latest figures show that GDP growth was negative at 7.5% in the second quarter of FY20-21. In the first quarter of the financial year, the June quarter, the Indian economy contracted by about 24 per cent. Negative growth for two consecutive quarters is technically considered a downturn. That is to say, the government has officially accepted the recession.

It may be mentioned here that the Indian economy was going through an unlocked phase in the September quarter of the financial year 2020-21. This means that the economy was slowly opening up after a severe lockdown.

Also increase the fiscal deficit

By the end of October in the current financial year, the central government's fiscal deficit has widened to Rs. 9.53 lakh crore, which is about 120 per cent of the annual budget estimate. This is not a good sign for the economy. Losses have increased mainly due to low revenue collection. It may be mentioned here that in the budget of the current financial year, the fiscal deficit for 2020-21 is Rs. 7.96 lakh crore or 3.5 per cent of GDP.

Unemployment rate statistics

According to the latest figures, the country's unemployment rate rose to 7.8 per cent in the week ended November 22. So, for the fourth consecutive week after October 25, the employment rate has been recorded. The country's unemployment rate rose to 6.98 per cent in October from 6.67 per cent in September.