Topics Covered: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
India ‘out of recession’:
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:
- Manufacturing revival.
- Agriculture growth accelerates.
- Financial, real estate sectors rebound.
- Consumer confidence still low.
- Government spending picks up.
- 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.
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.