Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Impact of Global Financial Crisis on the Indian Economy


     

   Subscribe/Renew Journal


The global financial crisis has originated in the sub-prime mortgage crisis in USA during 2007. The Government India has been concerned about the impact of the global financial crisis on the Indian economy and a number of steps have been taken to cope up with this problem. This paper presents a brief overview of the factors that led to the collapse of the financial markets around the world. It examines the Government of India's response to the financial crisis through stimulus packages. It also discusses the steps taken by Reserve Bank of India to deals with the problem of global financial meltdown. It analyzed the impact of all these steps taken by Government and RBI on different macroeconomic variables in India during the crisis time period. The Indian economy has proved relatively resilient in the face of the global economic crisis. India's large domestic market, along with government fiscal measures, a number of social programmes and a strong banking system have helped to mitigate the impact of the drop in demand in export markets.

Keywords

Financial Crisis, Sub-prime Mortgage, Stimulus Package, India
Subscription Login to verify subscription
User
Notifications
Font Size


  • - Allen, Franklin and Douglas Gale (2007), ‘Understanding Financial Crisis’, Oxford University Press. New York. USA
  • - C P Chandrasekhar (2009), ‘The Costs of “Coupling”: The Global Crisis and the Indian Economy’, Third World Network, Malaysia
  • - Chithelen, Ignatious (2008) ‘Global Financial Crisis: A long way from Recovery’. Economic & Political Weekly, Volume XLIII, No. 36, September 6. Pp. 16-19.
  • - Economic & Political Weekly (editorial) (2008), ‘The State and Global Finance’, EPW, Vol. XL III, No. 38, September 20. P.5.
  • - Government of India (2008), ‘Draft Report of the Committee on Financial Sector Reforms (Raghuram Rajan Report)’, Planning Commission, New Delhi.
  • - International Labour Office (2010), ‘G-20: india’s Response to the Crisis’, Meeting of Labour and Employment Minister, Washington, DC
  • - International Monetary Fund (2008), World Economic Outlook, Washington, D.C., October.
  • - Joseph E. Stiglitz (2008), ‘The Triumphant Return of John Maynard Keynes’, Guatemala Times, December 5, 2008
  • - Kannan K P (2009), ‘National Policy Responses to the Financial and Economic Crisis: The Case of India’, ILO Sub regional Office for South Asia, New Delhi
  • - Khalil Hamdani (2008), ‘Developing Countries be a New Engine of Growth?’, The IIMP Think Tank, pp. 204-208
  • - Kumar R (2009), ‘Global Financial and Economic Crisis: Impact on India and Policy Response in Global Financial Crisis: Impact on India’s Poor Some Initial Perspectives. India’ UNDP
  • - M Raquibuz Zaman (2009), ‘The Causes and Ramifications of the 2008- 2009 Meltdown of the Financial Markets on the Global Economy’, Eurasian Journal of Business and Economics, 2 (4), pp. 63-76
  • - Ministry of External Affairs (2010), ‘Weekly Economic Bulletin’, Issue No 361, Government of India
  • - Office of the Commissioner of Industries (2008), ‘Different Economic Stimulus Packages for Easing Difficulties of Micro, Small and Medium Sector Enterprises’, Government of Rajasthan, Jaipur
  • - Rajiv Kumar and Alamuru Soumya (2010), ‘Fiscal Policy Issues for India after the Global Financial Crisis (2008–2010)’, Asian Development Bank Institute, WP No 249
  • - Rajya Sabha Secretariat (2009), ‘Global Economic Crisis and Its Impact on India’, Research Unuit (LARRDIS), Rajya Sabha Secretariat, New Delhi
  • - Rangarajan C (2008), ‘’The financial crisis and its ramifications’, The Hindu, November 8
  • - Seok-Kyun Hur, Shikha Jha, Donghyun Park,and Pilipinas Quising (2010), ‘Did Fiscal Stimulus Lift Developing Asia out of the Global Crisis? A Preliminary Empirical Investigation’, Asian Developmet Bank, WP 215

Abstract Views: 385

PDF Views: 0




  • Impact of Global Financial Crisis on the Indian Economy

Abstract Views: 385  |  PDF Views: 0

Authors

Abstract


The global financial crisis has originated in the sub-prime mortgage crisis in USA during 2007. The Government India has been concerned about the impact of the global financial crisis on the Indian economy and a number of steps have been taken to cope up with this problem. This paper presents a brief overview of the factors that led to the collapse of the financial markets around the world. It examines the Government of India's response to the financial crisis through stimulus packages. It also discusses the steps taken by Reserve Bank of India to deals with the problem of global financial meltdown. It analyzed the impact of all these steps taken by Government and RBI on different macroeconomic variables in India during the crisis time period. The Indian economy has proved relatively resilient in the face of the global economic crisis. India's large domestic market, along with government fiscal measures, a number of social programmes and a strong banking system have helped to mitigate the impact of the drop in demand in export markets.

Keywords


Financial Crisis, Sub-prime Mortgage, Stimulus Package, India

References