New Delhi: The Indian economy may go into recession in the third quarter of the current financial year 2020-21. It has been estimated in a report. The latest Economic Review report by Dun & Bradstreet states that consumers will remain cautious for a long time after the corona virus epidemic, with declining incomes and employment. This will delay improvement in consumer demand.
The report said that the improvement in the country’s economic growth will depend on how much time the incentive package given by the government is implemented. Arun Singh, chief economist at Dun & Bradstreet India, said, “The impact of stimulus measures on the Indian economy will depend on three key aspects, the length of the lockdown removal, the package’s execution capacity and the time it takes.”
The report, however, said that the large package provided by the government was expected to help restart economic activities. In addition, the Reserve Bank has also increased the repo rate by 0.40 percent and the moratorium on repayment of loan installments by three months, Dun & Bradstreet said. This will also help speed up the economy.
Singh said that all the measures that the government has announced are positive. Most of the measures are about strengthening the supply side of the economy. But it needs to be noted that along with supply, demand should also increase.
