There is no doubt that the COVID-19 pandemic has had a major impact on India's economy. Here are some of the main effects, as well as the government's response:

• Decline in GDP: India's GDP growth rate had already been slowing before the pandemic, but it took a major hit once lockdown measures were put in place. In Q1 2020, GDP contracted by 23.9%. This was the biggest decline in decades.
• Unemployment: With the shutdown of many businesses, many workers were left without jobs. According to the Centre for Monitoring Indian Economy (CMIE), India's unemployment rate was 9% in December 2020.
• Disruption in industries: Many industries such as tourism, hospitality, and aviation were hit the hardest due to the pandemic. The demand for manufacturing and construction also decreased.
• Measures taken by the government: To mitigate the impact of the pandemic, the Indian government has implemented several measures including a $266 billion stimulus package which focuses on helping low-income households, MSMEs, and providing liquidity to the farming sector. The government has also introduced various labour laws and regulatory changes to improve the ease of doing business in India.
• Recovery: Despite the challenges, India's economy has shown signs of gradual recovery in recent months. The government has also announced several policies and reforms to stimulate the economy, encourage investment, and create jobs.

Overall, the COVID-19 pandemic has had a significant impact on India's economy. However, with the proactive measures taken by the government, the country is slowly but surely on the path to recovery.