Business climate worst since 2008 financial crisis, says RBI survey

Business climate in the recently ended September quarter was the worst since the 2008 financial crisis, according to the quarterly surveys by the Reserve Bank of India (RBI). 

This shows the severity of the current slowdown, and could be the reason for the bold cut in corporation tax rates, announced last month.  

Business activity contracted in Q2 FY20, the first contraction since 2013-14 and the second since the global financial crisis. Order books of manufacturing companies contracted by 23 per cent in the June quarter (Q1 FY20), the steepest drop since the 2008 financial crisis, said the quarterly survey. 

Economic