Uneven economic recovery from the pandemic on the global level poses a policy challenge to India. In this context, discuss the possible impact of uneven recovery and suggest the policy measures to deal with it. 10 marks

Mentor’s comment-
  • https://indianexpress.com/article/opinion/columns/us-coronavirus-cases-relief-package-joe-biden-7243679/
  • In the intro, mention the prospects of fast U.S. recovery driven by vaccination and stimulus package.
  • In the body, mention issues with such uneven recovery which requires measures different from those taken during the global financial crisis (GFC). In the suggestions, mention maintaining low interest rates, letting the currency depreciate etc.
  • Conclude by mentioning the need to take into account the challenge of rapid economic recovery.
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