The nationwide lockdown implemented due to Corona virus has created unprecedented crisis for the country’s economy. India’s economy seems to be going into recession for the fourth time since independence.
This may be the worst disaster ever. Rating agency Crisil estimates that the economy may shrink at the rate of five per cent in the current financial year.
Crisil in its estimate has predicted GDP to fall by 25 per cent during the first quarter (April-June) of the current financial year.
The agency estimates that it may take up to three fiscal years to return to growth. According to the available data, India has faced recession in 1958, 1966 and 1980 since independence.
The Crisil report said the first quarter of the fiscal year would be the worst hit. However, in the next quarters in education, tourism and other non-agro-based economies, there is not much hope for any relief.
The unemployment crisis will also deepen in these sectors. The rating agency has also predicted a prolonged impact on the economy of the states most affected by Corona.