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32 Economic Survey 2020-21 Volume 1
Figure 28: V-shaped Economic Recovery
Source: Data accessed from https://www.Covid19india.org/, MoHFW, MoSPI, BSE, IHS Markit
FAR-SIGHTED POLICY RESPONSE FOR ECONOMIC RECOVERY
1.46 The public health response needed to slow transmission of COVID-19, together with need
for social distancing and minimizing contact, has meant that service sectors reliant on face-to-face
interactions—particularly wholesale and retail trade, hospitality, and arts and entertainment—
have seen larger contractions than manufacturing. These service sectors, in most economies,
contribute a significant portion to both incomes and employment. The scale of disruption in
these sectors has, therefore, had a severe impact on the livelihoods of sections engaged in these
sectors.
1.47 The pandemic induced lockdowns led to local, regional, and global supply disruptions
hitting economic activity – rendering a ‘first order’ supply shock. This, in turn, has led to
