India stares at 5th recession: How is it different from the past downturns?

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News: India is staring at the 5th recession which will be different from previous recessions and will come with a fresh set of challenges.

Facts:

  • Recession: It is generally defined as a fall in the overall economic activity for two consecutive quarters (six months) accompanied by a decline in income, sales and employment.
  • Previous Recessions: According to Reserve Bank of India, since independence India has witnessed four recessions:
    • 1958 – Caused due to Balance of Payment(BoP) crisis
    • 1966 – Caused due to Drought 
    • 1973 – Caused due to Energy Crisis
    • 1980 – Caused due to Oil Shock leading to BoP crisis
  • Current Recession: The current recession staring at India is due to the coronavirus induced Lockdown which has affected the economic activity.