India’s GDP Slump: A Long and Painful Road to Recovery Ahead
The contraction of the GDP by 24 percent in Q1 is coming off as quite a shocker. Are we sliding into a recession?
Act of god or not, even though India was expected to see a considerable economic slowdown, the contraction of the GDP by 24 percent in the first quarter of the current financial year is coming off as quite a shocker. All thanks to this, India, once the world's fastest-growing major economy, now seems to be headed for its first full-year contraction since 1980.
With economic activities almost brought to a standstill due to the nationwide lockdown to curb COVID-19, most sectors like manufacturing and construction, which create the most number of jobs in the country, received a heavy dent. But experts warn that the figures may not be able to reflect the true extent of damage, especially since the informal sector was affected much more than the organised sector.
With outputs at a severe low, unemployment on the rise and incomes falling, experts also believe that it might take several years to recover from a slump of this magnitude.
Are we sliding into a recession? What is the root cause behind this crash and what is the road to recovery? Tune in to The Big Story!
(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)