November 12, 2020 12:52:49 pm
The main leader of Congress, Rahul Gandhi (Express photo by Amit Mehra / Archive)
Congressional leader Rahul Gandhi on Thursday targeted Prime Minister Narendra Modi over the RBI report, claiming the country has entered a recession for the first time in history due to Prime Minister Narendra Modi’s policies.
“India has entered a recession for the first time in history. Mr Modi’s actions have turned India’s strength into its weakness, ”he said on Twitter, citing a The Indian Express report.
The Aam Aadmi Party, led by Arvind Kejriwal, also targeted the Center and congratulated Finance Minister Nirmala Sitharama for “accomplishing this feat.”
India has entered a recession for the first time in history.
Modi’s actions have turned India’s strength into its weakness. pic.twitter.com/Y10gzUCzMO
– Rahul Gandhi (@RahulGandhi) November 12, 2020
The Indian economy likely entered a technical recession for the first time in history in the late first half of 2020-21, according to the Reserve Bank of India. After an unprecedented 23.9 percent drop in GDP in April-June as estimated by the National Statistical Office on August 31, the central bank has ‘forecast’ that the Gross Domestic Product (GDP) for the quarter July-September is scheduled for a contraction of 8.6 percent.
However, the RBI said the economy will emerge from the contraction of the past six months and return to positive growth in the October-December 2020-21 quarter. Incoming data for the month of October 2020 has improved the outlook and sparked consumer and business confidence, he said.
The NSO estimates for the second quarter expected at the end of November 2020 will formally confirm the degree of improvement that occurred in the past quarter, the RBI said in a ‘State of the Economy’ report.
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