13 APR,2020 | MEDC
India is simultaneously facing two crises – medical and economic. By some estimates, the ongoing lockdown could have deprived about a third of our workforce of their meagre livelihoods. Policymakers will now have to perform a tightrope walk between the medical consequences of the lockdown and its economic impact. India’s economy was in a rather precarious state even before the pandemic struck. The prolonged lockdown has led to a double whammy – a contraction of output on the supply side and a contraction of employment on the demand side. In rebooting the economy, a strategic coordination with the rural and the MSME sector is essential. The immediate task of the government is macroeconomic stabilization. Fiscal space has to be carefully created and prudently used to fuel up our sluggish economy. The coming months will pose the government its greatest challenge.
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