Economics, US, India, Pandemic, Policy Actions


COVID 19 pandemic that started in February/March 2019, with happenings in Yuwan, China spread like a wildfire all over the world. All countries faced one of the worst economic challenges in recent centuries if not ever in the history of the mankind. Early predications were so severe and devastating that some forecasters predicted a death-toll of 100 million all over the world, as the virus was not only spreading fast but also had no solution for its serious fatal effects. It was evident that the patients were dying before getting any effective treatments and many of them were elderly individuals. Helpless world was looking around for devastation of human life that had second to none. All the medical revolution, pharmaceutical developments, advanced research techniques were unable to come up with any answer. Policy makers all over the world and especially in USA and India came up with the drastic solution of compulsory shut down of all economic activity in March and April of 2020. This paper will discuss two special cases, USA and India and observe more closely how policy steps were taken in these countries. More specifically we will analyze the fiscal and monetary policy actions in these years and compare the two economies.

The paper is divided into three sections: Section 1 focuses on US economic activity in these four years and Section 2 does the same thing for India’s economy. In Section 3 conclusion is made that India’s conservative actions in relative sense have enabled her to manage crisis better. It is evident in 2023 that moderate policy actions can be more helpful for a faster recovery as seen by how India became a fast recovery nation in comparative sense.