Categories: Business

India may slip into recession soon says a report

Photo: PTI

Lockdown

new Delhi. The Indian economy may go into recession in the third quarter of the current financial year 2020-21. It has been estimated in a report. The latest Economic Review report by Dun & Bradstreet states that consumers will remain vigilant for a long time after the corona virus epidemic, with declining incomes and employment. This will delay improvement in consumer demand. The report said that the improvement in the country's economic growth will depend on how much time the incentive package given by the government is implemented.

Arun Singh, chief economist at Dun & Bradstreet India, said that the impact of stimulus measures on the Indian economy will depend on three key aspects, the length of removal of lockdown, the capacity to execute the package and the time it takes. The report, however, said that the large package provided by the government was expected to help restart economic activities. Dun & Bradstreet said that in addition to this, the Reserve Bank has also increased the repo rate by 0.40 percent and the moratorium on repayment of loan installment by three months. This will also help speed up the economy, Singh said that the measures announced by the government are positive. Most of the measures are about strengthening the supply side of the economy. But it needs to be noted that along with supply, demand should also increase.

This post was published on May 24, 2020 9:54 pm

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