MoS Finance hits backs at Rahul Gandhi over jibe on economy, highlights Congress' woes

On Thursday, MoS Finance Anurag Thakur lashed out at former Congress president Rahul Gandhi for his comment on state of Indian ecomy. Referring to 'State of Ecomy' article in RBI's monthly bulletin, Gandhi mentioned that India h entered into recession for first time in history. Moreover, he alleged that Prime Minister Narendra Modi's policies h turned India's strength into its weakness.

Calling upon Gandhi to focus on his own party, Thakur contended that discontent is brewing against him in Congress. In context of Congress winning just 19 out of 70 seats in Bihar, he urged Wayan MP to introspect on his party's reducing vote bank. Earlier in day, Congress General Secretary Tariq Anwar and senior leer PL Punia opined that Congress must introspect about ir loss in Bihar Assembly election. 

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RBI's prediction for Indian ecomy

During April-June quarter, India's GDP contracted by 23.9%. All sectors barring agriculture recorded negative GDP growth during this quarter. This was attributed to fact that India was among ecomies worst hit by COVID-19 pandemic. Elaborating on state of ecomy,  Centre ted that restrictions were imposed on n-essential ecomic activities and movement of people from March 25 to contain spre of COVID-19. It maintained that this h an impact on ecomic activities as well as data collection mechanisms.

On Wednesday, RBI predicted that GDP will contract by 8.6% in July-September quarter. As this will be second consecutive quarter where GDP growth rate is negative, it is believed that Indian ecomy will enter into a recession phase at end of first half of 2020-21. At same time, RBI has stated that ecomy will return to positive growth in October-December quarter of 2020-21. It has identified certain risk factors for growth of ecomy such as pressure of inflation and possibility of a second wave of COVID-19.

On Thursday, Union Finance Minister Nirmala Sitharaman anunced 12 new measures to boost ecomy. During her interaction with media, she exuded confidence in strong recovery of ecomy, citing boost in demand with fall in active COVID-19 cases. RBI will formally anunce GDP estimates for second quarter at end of vember. 

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