ISLAMABAD, Nov 13 (APP): Minister for Planning, Development and Special Initiatives Asad Umar Friday said that Indian economy was suffering recession for the first time since its independence mainly due to mishandling of COVID pandemic.
On the other hand, he said Pakistan’s economy was showing a positive sign as the Large Scale Manufacturing (LSM) growth of the country showed a robust growth of over 7 percent in September 2020 compared to same month of the preceding year.
While during first quarter of current fiscal year, the country’s industrial growth witnessed a growth of 4.8 percent compared to same period of last year and on month on month basis the LSM grew by over 10 percent in the month under review against August 2020.
However, the minister feared that this achievement could be squandered if the precautionary measures were not followed by the people.
“All signs are of strong economic recovery. Biggest risk is if we allow COVID to increase by making poor choices,” he said in his tweet.
Asad Umar said the Indian economy suffered recession for first time since its independence, with a 23.9% and 8.6% contraction in last 2 quarters.
“This is what happens when you mishandle Covid.”
“Pakistan must not allow our success and its economic benefit to be squandered by lowering our guard,” he added.
Meanwhile according to the reserve bank of India, the Indian economy entered into a technical recession for the first time in history at the end of the first half of 2020-21, according to the reserve bank of India.
After an unprecedented decline of 23.9 per cent in GDP in April-June as estimated by the National Statistical Office on August 31, the central bank has nowcast that Gross Domestic Product (GDP) for July-September quarter is set for a contraction of 8.6 per cent, the Bank reported.
In economics, when the GDP growth rate is negative for two consecutive quarters or more, it is termed recession.