Why India has increased economic freedoms in response to Covid, unlike Europe & US – ThePrint, Google News (India)

Why India has increased economic freedoms in response to Covid, unlike Europe & US – ThePrint

Why India has increased economic freedoms in response to Covid, unlike Europe & US  ThePrint

Illustration by Ramandeep Kaur | ThePrint Text Size: During the Covid-19 pandemic in India, central and state governments have been increasing economic freedoms. Given the limited fiscal space and the relatively small coverage of the formal credit system, the approach has been to push activities that can be done by individuals and businesses to sustain themselves. This has meant removing restrictions on what people can do. A number of things that were deemed to be illegal have been allowed, thus increasing the scope of activity and growth in the economy. Some of these relaxations have immediate benefits. Others do not, but augur well for the Indian economy in the long run. Also read: This recession is different & India can bounce back much faster than in the past 3 advantages Europe & US have over India The government’s economic response to the pandemic in India has been different to countries in Europe and America due to three main factors. One, those countries did not have structural issues such as loss-making public sector enterprises and banks, restrictions on farming and agricultural trade, etc. There was, thus, no benefit to growth that could be reaped by liberalisation. Second, countries such as Germany

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