Coming Up Sun 5:00 PM  AEDT
Coming Up Live in 
Live
Hindi radio

Is India heading towards recession?

Growth has slowed down in the previous quarter, while demand is still there in the market. Source: SBS

Reports of thousands of people losing their jobs and companies shutting their manufacturing units are giving jitters to the economists and commoners alike, according to Indian media reports. But is India heading towards a recession?

The reports of declining economic activity in India are worrisome, but technically speaking, the recession is not so simple, says Melbourne-based economist Dr Vinod Mishra.

“Negative growth for two consecutive quarters is considered a recession. The situation is not that bad. GDP is still growing positively; although it is much less than the earlier estimates. However, in broad terms, a recession is a significant decline in economic activity. So yes, there is some economic slowdown,” says Dr Mishra of Monash University, Melbourne.

Many sectors in India are feeling the heat of the decline in economic activity.

The auto sector is one of the worst hits.

According to the data released by the Society of Indian Automobile Manufacturers (SIAM), 200,790 lesser units of passenger vehicles were sold to car dealers in July 2019.

It is 30.9% lower than the same period in the previous year. The sales of automobiles in India declined by nearly 19% in July.

Vinod Mishra
Dr Vinod Mishra
Supplied

“Decline in the sales of consumer goods happens when the consumers lose confidence in the future,” says Dr Mishra.

“It is worrisome that consumer confidence is low. But it is not India-centric. This is a global trend and depends on various international factors such as US-China trade war.

“Indian economy depends much upon the oil and sanctions on Iran are causing issues," says Dr Mishra.

Tune into SBS Hindi at 5 pm every day and follow us on Facebook and Twitter

 

Coming up next

# TITLE RELEASED TIME MORE
Is India heading towards recession? 22/08/2019 09:00 ...
SBS Hindi News 27 November 2021: New variant of COVID-19, Omicron, designated as one 'of concern' 27/11/2021 12:41 ...
SBS Hindi News 26 November 2021: Pat Cummins appointed as Australia’s Test cricket captain 26/11/2021 11:08 ...
'Temporary graduates will be able to apply for replacement visas in 2022': Alan Tudge 26/11/2021 12:06 ...
India report: Prime Minister Modi lays foundation stone of Jewar Airport ahead of 2022 Uttar Pradesh assembly elections 26/11/2021 07:33 ...
एसबीएस बॉलीवुड टाइम: 26 नवंबर 2021 26/11/2021 08:47 ...
'Important for migrants to be in leadership roles': First Indian-origin director appointed to board of Australia's premier health body 26/11/2021 07:48 ...
SBS Hindi News 25 November 2021: With 1,254 cases, Victoria hits 90 per cent double vaccination 25/11/2021 12:18 ...
Fiji news: 25 November 2021 25/11/2021 05:00 ...
'Seeing my scars is a bigger punishment for him than any jail term,' says acid attack survivor 25/11/2021 12:52 ...
View More