Covid is back. Can battered economy absorb second wave shock?

A resurgence of Covid-19 cases has forced many states to reintroduce strict restrictions. Experts are worried that such measures could severely impact small businesses and poor households. Can the battered economy survive another wave of the pandemic? Read on to know more.

The scars left by the first wave of the Covid-19 pandemic have hardly healed and India is already facing a nastier second round of infections. On Friday, India reported over 1.31 lakh Covid-19 cases, marking the third day in a week when daily cases exceeded 1 lakh. The resurgence of Covid-19 cases has not only posed a fresh challenge to the healthcare system, but also the battered economy that has hardly recovered after exiting a recessionary phase a few months ago. The second wave could not have hit India at a worse time. It has disrupted hiring plans of corporates, increased business uncertainty and crippled operations. All of these factors could aggravate problems for India’s working class, especially low-income earners and migrant labourers.