Partly True: India's economy is in a bad shape and the market is under an unprecedented recession.

By: Ranjini K
September 30 2020

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The Indian economy is currently experiencing a bad time but has not entered into recession.India's economy was already on a downward slope even before the pandemic began. The government had imposed many restrictions on economic activities to control the spread of coronavirus, which resulted in job losses and salary cuts along with rising prices of essentials. The GDP fell by 23.9 percent in the last quarter, a historic low due to the Covid-19 induced lockdown. The fall is attributed to a slowdown in industrial activity, weak sales, and a fall in consumption demand. However, India has technically not yet entered a recession marked by a contraction in two straight quarters. The contraction may continue in the subsequent quarter due to a slump in aggregate demand, pushing India into recession. Further, the delayed recovery due to loss in income and uncertainty will impact consumer demand, even after the pandemic and may affect the economic growth as we advance. The COVID-19 pandemic has given rise to a lot of potentially dangerous misinformation. For reliable advice on COVID-19 including symptoms, prevention and available treatment, please refer to the World Health Organisation or your national healthcare authority.