India is at a crucial stage in its fight against the COVID-19 pandemic. But the necessary measures to limit the spread of the virus is causing a dramatic decline in economic activity and policymakers are worried about fighting the virus and minimize its impact on the economy. The coronavirus is making the entire world come at a standstill. The priority is to save lives, but on the other hand, it is also required to keep running the economic activity as the people would die due to starvation.
Policymakers must be prepared for long-term challenges, as the effect of the virus will not be short-term. It is, however, difficult to assess the adverse impact of the pandemic on the entire nation. It is essential to determine the immediate financial health to frame various strategies to deal with the situation shortly as the situation is going to endure for a long time. India's growth in the fourth quarter of 2020 went down to 3.1%, which is quite alarming for a nation to cope up with.