What is the current state of India's economy in the wake of the COVID-19 crisis
Analyze the impact of the COVID-19 pandemic on India's economy and examine the government's response to address the challenges.
- India's GDP contracted by 23.9% in the second quarter of 2020, the worst performance among major economies.
- Millions of jobs were lost across sectors, particularly in the informal sector.
- Supply chain disruptions and reduced demand hit manufacturing and service sectors hard.
- The government announced an economic stimulus package worth 10% of GDP to support various sectors and boost demand.
- The government also announced several measures to support small and medium-sized enterprises (SMEs) and farmers.
- Initiatives to boost investments in infrastructure and manufacturing were announced.
- Several structural reforms, such as liberalizing farm laws and labour reforms, were implemented to attract investment.
- The country's vaccination drive has been slow initially, which may delay the economic recovery.
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