The Covid-19 pandemic has had a significant impact on the Indian economy. The major economic challenges posed by the pandemic include:

• Job losses: The pandemic has led to the loss of millions of jobs in India, particularly in the informal sector, which employs a large number of people.
• Inflation: Due to supply chain disruptions, prices of essential goods have gone up, leading to inflation.
• Supply chain disruptions: The pandemic has disrupted supply chains, leading to shortages of goods and services in many sectors, including healthcare.
• Demand slowdown: Due to the lockdown and economic uncertainty, demand for goods and services has slowed down, leading to lower production and loss of revenue.
• Fiscal pressure: The pandemic has led to increased government spending on healthcare, relief measures, and economic stimulus, leading to fiscal pressure.

These challenges have had a significant impact on various sectors of the Indian economy. The service sector, particularly tourism, hospitality, and entertainment, has been hit hard due to the lockdown and social distancing measures. The manufacturing sector has also faced supply chain disruptions and a decrease in demand. The agricultural sector has been less affected, but farmers have faced difficulties in marketing their produce due to transportation restrictions. Overall, the pandemic has led to a contraction in the Indian economy, with the GDP declining by 23.9% in Q1 2020-21.