The pandemic has left India at an interesting crossroads. On the one hand, India is the fastest-growing large economy at 9.2% FY22, record foreign exchange reserves equalling 13 months of imports; inflation seemingly under control; stock market and corporate earnings in a positive direction. On the other hand, the two years post-covid have shown annual growth rates of 1%, the lowest in Independent India history. The brunt of the covid disruption is the 70 million micro-enterprises that employ over 200 million individuals. The impact of the formalization of the economy and that of covid has left a deep wound to this part of society that requires healing. Unless this is done, we will not see private consumption picking up and making the economic growth inclusive and robust. It is in the backdrop of a K-shaped economy that we need to evaluate the FY23 budget.