Here are a few things to keep in mind while the government ponders its stimulus options.
The foremost is that India has found itself in this situation thrice before.
The first was between 1966-69 after two successive wars and two droughts. The second was between 1979-1981 after a massive drought and the huge second oil shock. The third was between 1990-92 after the First Gulf War and a runaway fiscal deficit.
At the end of the 1960s needing money, the government nationalised 14 banks. At the end of the 1970s, it steeply raised indirect taxes. It also cut back on
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