Firing blanks on all fronts?

 "Economic activity accelerated further in the week ended September 13, returning almost to pre-lockdown levels, a private tracker released on Monday showed." Nomura India Business Resumption Index rose to 81.6 from 79 in the preceding week. As the number of coronavirus cases rises above 5 million, with over 82,000 deaths, "Crisil estimates that India will suffer a 'permanent' loss of 13% of real GDP over the medium term", wrote Udit Misra. "Permanent loss implies that the economy will not be able to recover this GDP value." "In everyday cash terms, this loss is going to be around Rs 30 lakh crore (Rs 30 trillion)." "This sharp economic contraction will show up in massive unemployment and disguised employment." According to the CEO of the Center for Monitoring Indian Economy (CMIE) Mahesh Vyas, "These is an existing pool of over 35 million unemployed people in India," and "as many as 21 million salaried jobs have been lost and these are not likely to be recovered in a hurry". "McKinsey Global Institute estimates India will need to create at least 90 million non-farm jobs by 2030, if it is to absorb all the young workers that enter its labor market." "Today we must worry about 'stagflation', a term that signifies the odd rise of prices amid economic stagnancy," wrote an editorial in the Mint. Supply constraints due to local lockdowns, increased money supply by the Reserve Bank (RBI) and an inflow of dollars are adding to price pressures. The economic stimulus package announced by the government in May was just 1% of GDP, according to experts. However, "So long as inflation stays above 6%, RBI would be wary of easing money any further. But if rate cuts stoke prices, so could a fiscal stimulus by the Center." In a policy reversal, the US Federal Reserve has announced that it will tolerate a higher level of inflation to help create jobs, which means its Funds rate will remain low for the foreseeable future. This means that the dollar will remain weak for a prolonged period, wrote VA Nageswaran. The RBI has been buying dollars to stop the rupee from strengthening which would be bad for exports. Exports were down for six straight months, falling 12.7% in August compared to the same period last year. The RBI has decided to let the rupee appreciate to bring prices down. The RBI earns nothing from its dollar holdings with the Fed Funds rate at near 0 percent and a weaker dollar reduces the value of its reserves, so buying dollars to weaken the rupee is a big loss. On the other hand, a strong rupee will only make imports cheaper and will be against Atmanirbhar Bharat announced by Prime Minister Narendra Modi, wrote Nageswaran. The RBI seems to have exhausted its ammunition. Does the government have any? Or is everybody firing blanks.