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The RBI’s latest rate cut announcement along with the extension of the three-month moratorium will provide a breather for individuals and businesses. India has used both monetary and fiscal measures to minimise the impact of the pandemic. However, economic revival will now be dependent on restoring production and consumer demand.

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  1. Unlike governments in the West, India cannot sustain its poorest households through even a few months of idleness. Knowing it’s fiscal limitations, the government should have planned for a limited duration lockdown, to prepare the healthcare system and to sensitise citizens on how they should deal with the virus. Closing down the economy to arrest the spread has not worked on either the medical or the economic front. The curve has some way to go before it begins to flatten.


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