Will India face a recession in June?

Will India face a recession in June?

Subject : Economy

Section: National Income 

Concept :

• While it is true that the economic momentum is slowing — going by the First Advance Estimates for 2022-23, GDP is likely to grow at about 4% in the January_March quarter—a recession is largely ruled out because GDP is expected to continue to grow at around 7% (according to the latest RBI projections).
• Thus, far from contracting, India’s economy is likely to grow,albeit at a slightly muted rate,right through 2023 and 2024.

Recession

• Recession refers to a phase of the downturn in the economic cycle when there is a fall in the country’s GDP for some quarters.
• It begins after the economy reaches a peak of activity and ends as the economy reaches its trough.
• A common rule of thumb for recessions is two quarters of negative GDP growth.
• A recession is a period of decline in total output, income, employment and trade, usually lasting six months to a year.’