Delaying relief any further may undo the gains in poverty reduction made over the past two decades As we move into the third phase of India’s lockdown, there does not appear to be any slowdown in the number of infections from covid-19, with the daily increase having exceeded 2,500 this week.
Without any counter-factual data, it is premature to conclude that the lockdown has been effective. But what is apparent is that while the lockdown may have decelerated the spread of the virus, it has accelerated the economic slowdown.
Recent high- frequency data, such as the Purchasing Managers’ Index for manufacturing and services, along with numbers on electricity demand, exports and domestic sales of automobiles and fast-moving consumer goods, all