Congress leader Rahul Gandhi on Thursday targeted Prime Minister Narendra Modi over the RBI report, claiming the country has entered into a recession for the first time in history due to the policies of Prime Minister Narendra Modi.
“India has entered into recession for the first time in history. Mr Modi’s actions have turned India’s strength into its weakness,” he said on Twitter, quoting a report by The Indian Express.
Arvind Kejriwal-led Aam Aadmi Party also targeted the Centre and congratulated Finance Minister Nirmala Sitharama for “achieving this feat.”
The Indian economy likely entered into a technical recession for the first time in history at the end of the first half of 2020-21, according to the Reserve Bank of India. After an unprecedented decline of 23.9 per cent in GDP in April-June as estimated by the National Statistical Office on August 31, the central bank has ‘nowcast’ that Gross Domestic Product (GDP) for July-September quarter is set for a contraction of 8.6 per cent.
The RBI, however, said the economy will break out of contraction of the six months gone by and return to positive growth in the October-December quarter of 2020-21. Incoming data for the month of October 2020 have brightened prospects and stirred up consumer and business confidence, it said.
The NSO estimates for the second quarter expected at the end of November 2020 will formally bear out the extent of improvement that occurred in the quarter gone by, the RBI said in a ‘State of the Economy’ report.