Recession Definition In India

The indian banking system has had no direct exposure to the sub prime mortgage assets or to the failed institutions.

Recession definition in india. A recession is also preceded by several quarters of slowing down. A recession is a decline in a country s gross domestic product gdp growth for two or more consecutive quarters of a year. It has very limited off balance sheet activities or securitized assets. The usual definition of a recession involves a decline in economic activity that lasts more than a few months.

Generally when an economy continues to suffer recession for two or more quarters it is called depression. In other words negative gdp growth rates and a contraction in the economy signified by a decline in real income employment industrial production and wholesale retail sales spread out over at least two quarters. This dismay stems from two arguments. The standard definition of recession is a drop in gdp for at least two consecutive quarters.

The first quarter april to june 2020 will suffer a staggering 25 per cent contraction it said in its assessment of india s gdp. These causes down fall in employment rate fall in wages rate and fall in retail price. Only 11 out of the 71 listed countries with quarterly gdp data poland slovakia moldova. Recession means when the economy of a country falls and some undesirable situations also occurred due to recession.

The table below displays all national recessions appearing in 2006 2013 for the 71 countries with available data according to the common recession definition saying that a recession occurred whenever seasonally adjusted real gdp contracts quarter on quarter through minimum two consecutive quarters. A recession is a situation of declining economic activity. Effects of recession on india there is at least in some quarters dismay that india has been hit by the crisis. Declining economic activity is characterized by falling output and employment levels.