Explained: How Covid restrictions are hurting economy during 2nd wave

Partial lockdowns and restrictions announced in some states have already started impacting lakhs of businesses, who may have no option but to permanently shut shop. This could lead to a sharp rise in unemployment and ultimately hurt India's economy.

Nearly six months after India managed to contain the first wave of the Covid-19 pandemic in the country, the virus has made a nastier comeback. This time, however, coronavirus cases are rising much faster with the country reporting more than one lakh cases daily. Not only has it overwhelmed the healthcare system but has also cast a fresh shadow over economic recovery. Although authorities suggest that India is well-prepared to deal with the second wave of the pandemic, the situation seems to be slipping out of hands — both from a health and economic perspective.