Friday, May 29, 2020
Home News GDP growth projected to be negative in first half of 2020-21

GDP growth projected to be negative in first half of 2020-21

The Reserve Bank of India (RBI) said on Friday that India’s GDP (GDP) growth would be negative in FY 2020-21, due to the economic activity being disrupted due to the corona virus outbreak. RBI Governor Shaktikanta Das said that the global economy is heading towards recession and inflation estimates are highly uncertain.

Also read: 6 key things about RBI Governor from EMI to inflation, know what relief Shaktikanta Das gave

Advertisement




“Two months of lockdown have severely affected domestic economic activity,” he said. He also added that the top six industrial states, which account for 60 percent of India’s industrial production, are largely in the red or orange region. He said that there are signs of decline in demand and demand for electricity and petroleum products has come down. The governor said the biggest setback was in private consumption, which accounts for 60 per cent of domestic demand.

Also read: EMI postponed for three more months, Moratorium extended to 31 August

Advertisement




Das said that economic activity would be affected in the first half of the current financial year due to a decrease in demand and supply disruption. He said that some improvement in economic activity is expected in the second half of 2020-21. He said, “GDP growth is expected to be negative in 2020-21, although there will be some uptick in the second half of 2020-21.

.

Advertisement




Advertisement




Most Popular

Covid-19: Yoga is protecting people living in quarantine from stress, revealed in research

Yoga is protecting people living in quarantine from stress due to corona infection. This has once again been confirmed by research conducted in six...

‘Committed to maintaining peace on the border’: China speaks on border dispute in East Ladakh

China's statement has come about the ongoing border dispute on the eastern Ladakh border amid the current state of the corona virus. China's...

Reports claim – Cricket Australia wants to host 2021 T20 WC, letter to ICC

Cricket Australia (CA) has written to the International Cricket Council (ICC) that it does not want to host the Men's T20 World Cup...

Home Credit hires 1,800 employees, BookMyShow hires 270 people

Homecredit India, a financial services company, has laid off 1,800 employees amid conditions arising due to the corona virus epidemic. Apart from this,...

Recent Comments