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.
The COVID-19 pandemic has had a significant impact on India's economy. Here are a few key points:
  • 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.
Despite the challenges posed by the pandemic, India's economy is expected to recover gradually in 2021 and beyond, supported by these measures and improving global economic conditions.
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