Congressional leader Rahul Gandhi once again targeted Prime Minister Narendra Modi, claiming that India has entered a recession due to decisions made by the prime minister.
“India has entered a recession for the first time in history. Modi’s actions have turned India’s strength into its weakness, ”Gandhi tweeted on Thursday. He attached a news report along with the tweet that talked about the state of India’s economy.
In an article in the Reserve Bank of India (RBI) monthly bulletin released on Wednesday, an official said that India’s Gross Domestic Product (GDP) is likely to contract by 8.6 percent for the period. July-September, which means that India will enter a recession for the first time in history in the first half of this fiscal year with two successive quarters of negative growth due to the Covid-19 pandemic.
Researchers have used the “immediate forecast” method to arrive at estimates prior to the official release of the data. However, their findings do not constitute the views of the central bank.
The lockdowns induced by the pandemic had caused a sharp contraction of 23.9% of GDP for the April-June quarter compared to the same period of the previous year. The RBI has estimated that the economy will contract by 9.5 percent for the entire fiscal year.
Gandhi has been targeting the Center for handling the coronavirus crisis, accusing it of not doing enough for the people of the country. He also criticized the blockade imposed by the Modi government.
He said Wednesday that the central government needs to have a vaccine distribution strategy after US drugmaker Pfizer announced promising results for its coronavirus vaccine.
Also read: On Pfizer’s Covid Vaccine Announcement, Rahul Gandhi Asks Government Key Questions
Meanwhile, the Center approved a Rs 2 lakh crore package of production-linked incentives (PLI) on Wednesday with a view to boosting demand across India.
According to the Reuters news agency, in addition to the PLI package, government officials stated that a new round of stimulus totaling about $ 20 billion is planned to be announced this week to help lift the economy out of its historic contraction that Prime Minister Modi will end. The Union’s Finance Minister, Nirmala Sitharman, and other senior officials.
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