As the Covid-19 pandemic inflicts enormous costs on countries globally, efforts are being made to compute the loss to the economy so as to devise countervailing measures to mitigate its ill-effects.
Kapur and Subramanian1 (K&S henceforth), estimated that an extended lockdown in India would imply that about a month’s gross domestic product (GDP) would be lost and that government expenditures to the extent of 5 per cent of GDP would be required to make good this loss. CRISIL has estimated that India’s real GDP growth rate will collapse to 1.8 per cent, which is quite similar to the forecasts of
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