Amid the coronavirus pandemic, followed by debate over unemployment, uncertain economic situation, and farmers’ protest, the recently released ‘World Economic Outlook’ report by the International Monetary Fund shows an adverse condition of India’s economy. India is set to drop below neighboring Bangladesh with regard to per capita Gross Domestic Product (GDP), as the latest report of IMF projects that India is going to witness contraction by 10.3 per cent this year. The figure is indicating a major recession in India’s economy if compared to the previous report by IMF in June, that projected a contraction of 4.5 per cent.
The ‘World Economic Outlook’ states that India’s per capita GDP is set to mark a quick drop to $1,877 this fiscal year that ends on March 31, 2021. On the contrary, Bangladesh’s per capita GDP is expected to grow to $1,888. It is important to mention that major economies like the United States, Germany, Italy, Japan, France are also set to witness contraction of 4.3, 6.0, 10.3, 5.3, and 9.8 per cent this year respectively.
However, the report stresses on the fact the coronavirus pandemic is one of the major reasons behind the recession of economies. ” It finds that the adoption of lockdowns was an important factor in the recession, but voluntary social distancing in response to rising infections also contributed very substantially to the economic contraction. Therefore, although easing lockdowns can lead to a partial recovery, economic activity is likely to remain subdued until health risks abate,” says the report. The IMF report further reveals that global growth would drop by 4.4 per cent in 2020 and bounce back to 5.2 per cent in 2021.
Political leaders and known faces from industries are reacting to the report. Indian National Congress leader Rahul took the issue to social media, he wrote, ” Solid achievement of 6 years of BJP’s hate-filled cultural nationalism. Bangladesh set to overtake India.”
Member of parliament Abhishek Banerjee heavily critised the government citing the IMF report. ” Indian Economy in tatters, as even Bangladesh is set to overtake us in Per Capita GDP as per IMF‘s World Economic Outlook. Listen carefully, it’s not their resurgence, but our colossal downfall, in pursuit of Narendra Modi Ji’s 5 Trillion dream!” Banerjee tweeted.
However, it is substantial to mention that the ‘World Economic Outlook’ also projected that Asia’s third-largest economy, India is going to bounce back with 8.8 per cent growth in the next fiscal year.