Recovering from the Covid epidemic

The fiscal conservatism of the finance ministry means growth revival will take longer and may not be seen till late in the next fiscal year or even later

Discussion about the Covid epidemic and the government’s policy announcements is shifting from how best to manage the epidemic to the most appropriate strategy for recovery from the social and economic havoc created by it. The stated goal is to stimulate the economy so that the growth process restarts by the second quarter of this fiscal year and accelerates in the first half of 2021-22.

The government has announced a Rs 20-trillion package for stimulating economic recovery and providing relief and rehabilitation to those most badly affected. Judging by the content of the package, it would appear that the government