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Comment upon the economic impact of the COVID-19 pandemic and suggest a few policy measures to address this challenge.

Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.

6. Comment upon the economic impact of the COVID-19 pandemic and suggest a few policy measures to address this challenge. (250 words)

Reference: The Hindu 

Why the question:

The article co-authored by the former Prime Minister Dr Manmohan Singh discusses the economic impact of the COVID-19 pandemic and suggests a few policy measures to address this challenge.

Key Demand of the question:

Discuss the economic impact of Covid-19 pandemic and suggest a few policy measures to address.

Directive:

Comment– here we have to express our knowledge and understanding of the issue and form an overall opinion thereupon.

 Structure of the answer:

Introduction:

India entered the COVID-19 crisis in a precarious position, with slowing growth, rising unemployment and a strained financial system. The epidemic has made it more painful.

Body:

The COVID-19 pandemic and the subsequent regulations have had adverse impacts on livelihoods and the larger economy. The economic impact of COVID-19 is expected to be bigger than the health impact itself. The global economy is expected to experience one of its worst years in history and the Indian Economic contraction does not just imply a decrease in GDP numbers but marks a reversal of years of progress.

The article argues that the slowdown in economic activity is a function of both external factors such as the lockdown and behavioural changes of people and enterprises, driven by fear, and calls for definitive and urgent steps to revive the economy back to good health.

The article argues that the key to reviving India’s economy would be to inject confidence back in the entire ecosystem involving the people (consumers), entrepreneurs and the bankers.

Conclusion:

The path to sustained recovery is to improve confidence and sentiments in society, using economic tools of fiscal and monetary policies.