New Delhi: The Reserve Bank of India on Thursday stated that the country’s economy for the first time is in historic technical recession in the first half of 2020-21. Also Read - Working on War Footing to Resolve Matter: HDFC Bank Tells Customers After RBI Order on Service Outage

According to a team of economists, including Michael Patra, RBI’s deputy governor in charge of monetary policy, the economy shrank for the second straight quarter. Also Read - RBI Asks HDFC to Stop Selling New Credit Cards & Halt Digital Activities After Outages

“India has entered a technical recession in the first half of 2020-21 for the first time in its history,” the economists wrote in a report. Notably, the Centre is due to publish the official statistics on November 27. Also Read - Reviving Economy: Will RBI Announce Another Rate Cut Soon? Check Details Here

The RBI is buoyed by cost cuts at companies that boosted operating profits even as sales dipped. It also said that if this upturn is sustained, the economy will return to growth in the October-December quarter.

In August this year, the Central government had reported a 23.9 percent contraction in its Gross Domestic Product (GDP) for the April-June quarter. The RBI has ‘nowcast’ that GDP for the July-September quarter is set for a contraction of 8.6 percent.

‘Nowcasting’ is the prediction of the present or the very near future of the state of the economy.

On the other hand, Moody’s have also revised India’s 2020 GDP target and a decline of 8.9% is expected now.