India is between a rock and a hard place. The pandemic still rages and yet as a middle-income developing country it simply cannot afford another national lockdown. The economy, which was slowing well before the current crisis, has been severely hit. A quick economic recovery is not in the cards and the next investment-led business cycle upswing has been further delayed. Rising banking-sector NPLs and a burgeoning budget deficit pose additional downside risks. However, the government’s latest labour market and agriculture sector reforms have laid the foundations for a strong and resilient recovery, when it does take root.