Even without lockdown pandemic would have created significant economic impact: CEA

New Delhi, Jan 29: Chief Economic Advisor, K Subramaniam has launched the Economic Survey 2020-21, which has been tabled in Parliament today.

Chapter 1 of the Economic Survey is about India's policy response to COVID-19, Saving Lives And Livelihoods, amidst a once-in-a-lifetime crisis, he said. During high uncertainty, policy should minimise large losses. India's policy response to COVID-19 was guided by the realisation that GDP growth will come back, but not lost human lives. Early intense lockdown saved lives, helped faster recovery, the CEA also said.

Subramaniam also said that the strong correlation of the lockdown with decline in cases and deaths is found across states and not just within a few states. Hence the Economic Survey infers that lockdown had a casual effect on saving lives and livelihoods.

The policy response which India came up with, was a mature and farsighted one. India under short term pain to get long term gain. The V-Shaped recovery makes India a Sui generis case in mature police making he also said.

Even without lockdown, the pandemic would have created a significant economic impact. But what the lockdown ensured is help a coordinated response, enabling saving lives and livelihoods, the CEA also added.