The relief package for households doesn't bring relief in the long term
Most of the measures taken by the government and the central bank address immediate liquidity needs and can be counter-productive in the long run
With the lockdown extending well into the fourth phase, the Indian economy has taken a huge battering and so have our salaries and income. From salary delays to pay cuts to furloughs to job cuts, most of us are experiencing the pain in some form. The government and the central bank have been announcing measures to alleviate the pain of the households but, largely, these measures address the immediate liquidity needs, if at all, and can be counter-productive in the long run.