The number of new Covid-19 cases has come down significantly over the past few weeks in India, but the outlook remains fairly uncertain. A sharp trend reversal in other parts of the world, such as the US and Europe, suggests that the situation can quickly change for the worse. An increase in infection would limit mobility for an extended period and make the overall damage more enduring — not limited to loss of output. For instance, the pandemic is expected to reverse the progress in global poverty reduction since the 1990s. The other major area that needs policy attention is