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India ‘out of recession’

Topics Covered: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.

India ‘out of recession’:


Context:

As per the National Statistical office (NSO), India’s economy is out of recession but still a long way from returning to rates of growth seen before the pandemic.

India- Asia’s third biggest economy recorded a rise in gross domestic product of 0.4% in the final three months of 2020, compared with the same period a year earlier.

  • Last year, the country plunged into recession for the first time in nearly a quarter of a century, with economists warning that it would struggle to recover from the slump.

Key takeaways from Q3 GDP data:

  1. Manufacturing revival.
  2. Agriculture growth accelerates.
  3. Financial, real estate sectors rebound.
  4. Consumer confidence still low.
  5. Government spending picks up.
  6. Investment demand rises.

What is Recession?

It is a macroeconomic term that refers to a slowdown or a massive contraction in economic activities for a long enough period, or it can be said that when a recessionary phase sustains for long enough, it is called a recession.

Depression:

It is a deep and long-lasting period of negative economic growth, with output falling for at least 12 months and GDP falling by over 10% or it can be referred to as a severe and prolonged recession.

Sources: the Hindu.