21 FEB,2021 | MEDC
Maharashtra’s uneven economic recovery is now risked by the resurgence of Covid, and the reintroduction of stricter containment measures in some areas. Even though signs of stabilization are becoming increasingly visible, new cases and deaths are also rising. There still remain risks to recovery. Covid hit Maharashtra particularly hard because of its many inherent structural fragilities … for example, more people working in labour-intensive sectors requiring close physical contact and less in which teleworking is feasible. Healthcare capacity is stretched in many places, and the need for a strategic technological upgradation throughout the system is rising. Limited success in containing new infections, re-imposition of lockdowns, and the consequent changes in peoples’ behaviour all impact economic growth. On the other hand, available indications point to the vaccination drive becoming a game-changer. Even though we will need to learn to live with Covid for some time more, additional fiscal support would create the conditions for a speedier recovery. The worst is probably now behind us, and we trust Maharashtra’s policymakers to steer the state economy in the right direction.
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