Economic Survey: Policy-makers saw Covid disruption as supply side problem

Survey says incorrect to view pandemic-led disruption as merely a demand shock, defends supply side measures put in action by govt as a policy response to the pandemic.

Why did the government of India choose supply side reforms over measures to boost demand into the pandemic? To provide flexibility and resilience to the Indian economy, says the Survey

Saying that it is incorrect to view the pandemic-led disruption as merely a demand shock, the Economic Survey of 2021-22 strongly defended the supply side measures put in action by the Government of India as a policy response to the pandemic.

“A distinguishing feature of India’s response has been an emphasis on supply-side reforms rather than a total reliance on demand management. The government aggressively implemented supply-side measures to prepare