Prime Minister Narendra Modi rightly noted last week that the economic impact of the Covid-19 pandemic was “huge”. The economy is expected to have contracted by around 8 per cent in 2020-21 and the anticipated recovery in the current fiscal year has been derailed by the second wave of the pandemic. Most states have imposed restrictions on public mobility to contain the infection. Although the impact of lockdowns is less severe than last year, the second wave has significantly delayed full economic recovery. While the number of cases is coming down, what is worrying is — unlike last year —

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