Recovery analysis that points out what India got wrong

Context:

• A recent World Bank report, titled “Correcting Course”, has captured the impact of the COVID-19 pandemic on global poverty, highlighting the rise in inequalities.

How did India fair?

• Rise in poverty: About 5.6 crore people are likely to have slipped into poverty as India’s GDP fell by 7.5% in FY 2020-21.
• Insufficient fiscal stimulation: Although the Government announced a fiscal stimulus worth Rs 2 lakh crore, only a small fraction gets reflected as incremental spending.
• Unable to boost consumption: Stimulus packages in the form of credit lines and refinancing schemes to private enterprises, didn’t realize the goal of boosting household-level consumption.

No long-term solution:

• Pradhan Mantri Garib Kalyan Ann Yojana (PMGKAY): This scheme was continued in the backdrop of obvious household-level distress but it has not met its desired goals.
• Chronic Malnutrition: India has ranked 107^th out of 121 countries in the 2022 GHI, which indicates that PMGKAY is not the solution for persisting chronic malnutrition.