India has technically entered into a recession with a slight contradiction in its GDP during the period of July-September according to a report by the Reserve Bank of India (RBI). RBI’s Economic Activity Index estimates that India’s GDP growth for the second quarter of the current financial year was negative and the GDP contradicted by 8.6 percent during the quarter.
The good news is that the contradiction is ebbing with gradual normalization in activities and expected to last only for a short period of time.
The RBI report stated that at a time when no global economic activity is happening due to the outbreak of the second wave of COVID, incoming data for the month of October this year have brightened the near term outlook for the Indian economy and stirred up consumer and business confidence.
