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When did India’s past recessions occur?

02:20 PM Nov 24, 2020 | Sharanya Alva |

India has previously witnessed recessions in the fiscal years 1957-58, 1965-66, 1972-73 and in 1979-80

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The economy grew at -1.2%, -3.7%, -0.3% and -5.2% in these years, respectively. India is likely to have entered a recession in the July-September quarter. GDP figures set to be released this week are expected to show negative economic growth for a second straight quarter.

1957-58

According to BT, It was a difficult period for agriculture sector. Weak monsoon adversely affected agricultural production, which led to increase in prices.

1965-66

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India which had fought wars with China in 1962 and more recently with Pakistan in 1965 was in a recovery stage. The very next year, two severe droughts affected Indian economy (during 1966 & 1967).

1972-73

In 1973, world witnessed its first energy crisis as the Organisation of Arab Petroleum Exporting Countries (OAPEC) proclaimed an oil embargo (an embargo is an official ban on an activity or trade with a particular country).

1979-80

The world witnessed a second oil shock during 1979-80. It occurred due to a decrease in oil production in the wake of Iranian revolution and led to increase in oil prices. This was followed by Iran-Iraq war which further curtailed production and escalated prices.

2020-21

Amid the Covid-19 pandemic, the economy has contracted 23.9% in the April-June quarter. However, the recovery beginning October has been stronger than market expectations.

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