Consider the following statements regarding India’s economic responses to…
2023
Consider the following statements regarding India’s economic responses to challenges posed by the Covid-19 pandemic: (a) India adopted the ‘Barbell Strategy’ to meet the challenge posed by the pandemic. (b) There was total reliance on demand management rather than focusing on supply-side reforms. Choose the correct answer:
- A.
(a) is correct but (b) is wrong
- B.
(a) is wrong but (b) is correct
- C.
Both (a) and (b) are correct
- D.
Neither (a) nor (b) is correct
Attempted by 121 students.
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Correct answer: A
Answer: The statement that India adopted the 'Barbell Strategy' is correct; the statement that India relied entirely on demand management is incorrect. What the 'Barbell Strategy' means: It combines immediate short-term relief to protect vulnerable households and firms with targeted long-term supply-side and structural reforms to support recovery and growth. Short-term measures: cash transfers and food distribution for vulnerable groups, liquidity support and credit guarantees for MSMEs, fiscal measures and RBI liquidity operations.