UN Trade Report’s Assessment About Recession Chances in India

Coronavirus scare is gripping the entire globe. As many as 8,50,000 cases were registered so far and there are over 42,000 deaths already. Many countries have come to a standstill and the economies are badly hit. For instance, several states in India are deferring the salaries to the Government staff.

Amid this gloom, here is good news from the latest UN trade report. According to the analysis, Developing countries are likely to face a $2 to $3 Trillion drop in the investments from Overseas in the next two years. The report says India and China may escape the global recession.

However, the report did not give a detailed explanation as to why and how India and China will be exceptions as the World faces a recession and loss in global incomes. The government of India had decided to borrow 4.88 Lakh Crore in the first half of this financial year.

A majority of this would be used as a stimulus to the economy. The Government had recently announced a stimulus package of 1.7 Lakh Crore to rescue the poor affected by Coronavirus Lockdown. This scheme includes food security and cash transfers.