In an interview to Karan Thapar on the state of the economy as 2020 ends, the Head of Emerging Markets at JP Morgan Bank has both clarified a widespread misconception about the Indian economy whilst sounding a serious note of concern about its future.
Jahangir Aziz says it’s wrong to claim that with Q2 results India has slipped into its first-ever technical recession. That mistaken belief is based upon a misunderstanding of what constitutes a recession.
However, Dr Aziz has also warned that if the government does not provide for “extensive income support” India could end up in a serious financial crisis just about the time when vaccines make an economic recovery possible. If that happens it will seriously obstruct India’s recovery and economic growth.
Watch the full interview here.