The world has been through the shock of what started as pneumonia in Wuhan which was later on called as Covid-19 or Coronavirus disease 2019. In the wake of rising infections, the virus got international attention when WHO declared it a major public health crisis of international importance on 30 January 2020, and a pandemic on 11 March. The virus which started off by affecting world's most populous country (China) traveled to the whole world i.e., around 180 countries and inflicted two shocks on them: a health shock and an economic shock. Among those India has been on the top 10 worst hit countries by this global pandemic. Since the disease turned out to be highly contagious, and there were no specific measures known to contain its spread and so the governments all around the world-imposed norms suggested by WHO like social isolation, isolation of self at home, shutting down of institutions and public facilities, limitations on mobility and a country-wide lockdown. Following the footsteps, the Indian government also imposed a countrywide lockdown on 25^th march 2020 of 3 weeks which got extended 3 more times with the fourth phase being completed on 31 may 2020.This affected the macroeconomic aggregates which in turn halted the economic activity ultimately causing deceleration in GDP.

Keywords: Monetary Policy, Covid-19, GDP, RBI, WHO.