04 MAY,2020 | MEDC
Both the economy and the markets are plummeting. An inevitable global recession is staring us in the face. The IMF in its World Economic Outlook (April 2020) has projected that India’s GDP growth will decline to 1.9 per cent in FY21. Covid-19 is a true black swan event, which is disrupting the Indian economy like nothing seen before. Both our agricultural and MSME sector are hard hit, and one can expect the situation to worsen before it improves. It is obvious that the ongoing lockdown (at least in its present form) cannot be sustained for much longer. India will soon have to evolve a more refined mechanism for coping with the fine balancing act between public health and an economic downturn. The policy priority of the government needs to be geared towards more financial support to the lower and middle classes. If the bottom of the pyramid is secure, it is easier to handle an economic calamity.
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