NITI Aayog Deputy Chairman Rajiv Kumar has described the recovery in India’s economy as a ‘pleasant surprise’.
NITI Aayog refuses recession
The GDP figures for the September quarter of the current financial year have been released. These figures have definitely shown a recovery compared to the June quarter, but technically it is also considered a recession. However, the government’s think tank NITI Aayog does not consider it a recession.
No sense of technical slowdown
In an interview to India Today, Deputy Chairman of NITI Aayog, Rajiv Kumar clearly stated that this is not a technical slowdown. These are not normal circumstances. In such a situation, there is no point in talking about technical slowdown. Rajiv Kumar said that we are coming out of crisis. In the second quarter, the GDP growth estimate was negative at 10 per cent, which has been reduced to 7.5 per cent. There is also growth in consumer demand, which is a very good sign.
Why is recession being said?
In fact, in the second quarter of September 2020-21, the GDP growth was 7.5 percent in the negative. In the first quarter of the financial year, ie, in the quarter of June, the Indian economy has fallen by about 24 percent. Negative growth in two consecutive quarters is technically considered slow.
Growth expected in January-March quarter
At the same time, on the eighth consecutive month of decline in the production of core sector, Rajiv Kumar said that there will be no contraction for a long time. Fertilizer and power are showing positive growth in core sector also. Let us know that the production of core sector decreased by 2.5 percent in October this year compared to a year ago. This is the eighth consecutive month when the production of these areas has decreased.