India's Gross Domestic Product i.e. GDP in the first quarter of FY 2019-20 has been weaker than the corresponding period of the previous year.

Data for the first quarter of 2019-20 has been released. According to which the economic growth rate is 5%. The growth rate during the same quarter of the previous financial year was 8 percent.

At the same time, the growth rate was 5.8 percent in the last quarter of the last financial year.

According to economist Vivek Kaul, this was the slowest quarterly growth in the last 25 quarters and the lowest during the Modi government.

Experts say that the pace of growth in the country's economy is slowing down. This has been happening for the last three years.

He says that the rate of growth in many sectors of industries has reached the lowest level in many years. The country is moving towards recession.

The Indian economy grew at a slower pace in the second quarter. So, with the slowdown in the growth rate of the economy for the second consecutive quarter, should we assume that we are moving towards economic recession?

Mumbai-based Vivek Call, an expert on economic affairs, says there has been a slowdown in the growth rate of India's economy, but it will not be called recession. He says, "The recession means negative growth for two consecutive quarters. India's economy has slowed down but there cannot be negative growth."

According to NITI Aayog Deputy Chairman Rajiv Kumar, the decline in growth rate in the first quarter of the year ending in June should not mean that the country's economy has fallen into recession.

He says, "There are many reasons for slow growth in India, among which the slowness in all the economies of the world is a big reason."

Rajiv Kumar says that the fundamentals of India's economy are strong. He says, "The Finance Minister announced several steps last week that will have a positive impact on the mood of investors and customers. We are entering the festive season and we hope to see a growth rate by the second quarter. ''

What is the Definition of Recession? This is a thorny question on which experts are still not completely unanimous.

Technically, India's economy has grown in slowdown for the second quarter in a row, ie the growth race has been declining for six consecutive months but if the growth rate increases in the next three quarters of this financial year then it will not be called a recession.

Are there various forms of recession? Absolutely. The economy may shrink for two consecutive quarters, but then recover in the next two quarters of the financial year, then growth will actually increase for the entire year.

In Western countries, it is called a mild recession. If there is a complete decline in economic growth on a year-to-year basis, it can be called a severe recession.

This also leads to depression, ie negative growth for years.

The greatest crisis in the American economy came in the 1930s, which is remembered today as the Depression. Depression has inflation, unemployment and poverty at its peak.

Economic experts say that the economy may also suffer from psychological depression.

According to Vivek call, if the customer becomes alert and postpones the purchase, then it will reduce the demand, due to which the economic growth rate may decrease. If inflation starts rising and there is an atmosphere of uncertainty, then people feel that they are living in recession.

When did the recession come in India? The biggest crisis in the Indian economy came in 1991 when the country's foreign exchange reserve for imports was reduced to $ 28 billion. Today this amount is 491 billion dollars.

There was a global recession in 2008-09. At that time India's economy grew at a rate of 3.1 percent which was lower than in its earlier years but according to Vivek Call India was not a victim of recession at that time also.

(Click here for Android APP of IBTN. You can follow us on facebook and Twitter)

Share This News

About sharing