Mumbai: The country’s growth rate is projected to decline by 7.6 per cent in the second quarter of the current financial year. This is according to the Reserve Bank of India. India is in a state of recession, according to a first-time release by the Reserve Bank of India. In the first three months of the current fiscal year (2020-21) (April-June 7), the country’s GDP fell by 23.6 percent. The Reserve Bank estimates that GDP growth will be low in the second quarter of July. Such an assessment is made after examining a number of important facts. Economists like Michael Patel, the deputy governor in charge of the Reserve Bank’s monetary policy committee, have made the assessment. “For the first time in history, India has entered a technical downturn,” they wrote. The Government of India will release its second quarter GDP data on the 24th of this month. It will then be clear at what level India’s financial situation is. The authors of the Newcastle have covered a wide range of data, from car sales to banking. After analyzing all that data, they indicated that the economy would improve during the third quarter (October-December). But they have warned that the economy could be in jeopardy if prices are not kept under control. “If the corona outbreak is widespread for a second time around the world, it could seriously affect the country’s economy,” the authors said. “Everywhere you look today, the tide of protectionist sentiment is flowing. The dangers posed by this have been delayed but not completely eliminated. The impact is likely to fall on the financial sector. Many people have cut their costs and increased savings after losing their jobs. As a result, household savings have increased to 12.4 percent of GDP by the end of June this year. Last year, the savings rate was 7.6 percent. People have deposited most of their savings in bank deposits. “People will continue to save until the corona epidemic goes away,” the report said.
