Public spending from the federal and state governments likely hold the key to jumpstarting India’s post-Covid growth instead of consumption, a JPMorgan economist said Tuesday.

South Asia’s largest economy was knocked off its growth trajectory last year due to a months-long national lockdown aimed at slowing the spread of the coronavirus outbreak. The fragile economy was hit further this year when a second, more devastating wave claimed tens of thousands of lives and forced states to implement localized shutdowns.

“We have been through two waves. There has been some scarring at the bottom of the pyramid,” Sajjid Chinoy, chief India economist at the U.S. investment bank, told CNBC’s “Street Signs Asia.”

Certain sections of the economy thrived despite the Covid crisis while others suffered. For example, large firms mostly saw their profits rise while top income earners were able to save. Small businesses and poorer households struggled with rising debt and loss of income.