India’s economy, the third largest in Asia, is in a deep recession because of the coronavirus and the aftermath of the strict lockdown measures earlier this year. In the third quarter, the economy shrank by 7.5 percent on an annual basis, after a downturn of almost 24 percent in the previous period.
With two quarters of shrinking in a row, there is a technical recession. It is the first time since the beginning of the quarterly measurements in 1996 that India has entered a recession. In most economic sectors, things were bad, such as trade, tourism and finance. The agriculture and energy sectors were doing well.
India is now showing the largest contraction of the major emerging economies in the world. In order to stimulate the economy, the Indian central bank reduced interest rates several times this year and came forward with support packages. The country with more than 1.3 billion inhabitants now has 9.3 million infected and about 136,000 deaths from the virus.