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