The impact of Covid-19 on the Indian economy appears to be quite devastating. Various projections suggest that GDP growth would be negative in the current financial year. Even the international financial institutions (such as the IMF) that had projected a mild positive growth, appear to now think that the growth prospects could have sharply worsened since their last forecast. All this has led to demands for larger public policy interventions to address the imminent slowdown due to the compression in both aggregate demand and aggregate supply.
Right from the beginning, the Reserve Bank of India (RBI) was proactive with its
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