India's policy fault lines

It is important to note that the economy was losing momentum even before the Covid crisis

The continued rise in Covid-19 cases and localised lockdowns in several states have increased the risks to economic recovery. If the trend continues in the coming weeks and months, the scale of contraction in the Indian economy would only increase. Rating agency ICRA, for instance, now expects the economy to contract by 9.5 per cent in the current financial year, compared to its earlier forecast of 5 per cent contraction. Other forecasters are also revising their estimates as the recovery seems to be losing momentum. The halt in the economic slide will depend on how quickly India is able to