recession in the US with the US Fed tightening its monetary policy to control inflation after the covid stimulus that included cash transfers.
It is also significant given that India’s covid response had earlier faced criticism from the Opposition about its size and that it was focused more on the supply side and liquidity boosting measures. “While all other economies – both advanced and emerging – focused their policy primarily on stimulating demand, India’s policy focused on enhancing demand and supply.
Crucially, India identified early that the Covid pandemic would negatively impact aggregate supply," Subramanian said in a tweet.
He said by maximizing the bang for the taxpayer’s buck on the demand side and recognizing early the need for supply-side measures ensured that India is in a better macro situation compared to the rest of the world.