Global Financial Crises and Its Impact on India

Abstract

Indian economy is experiencing a downturn after a long spell of growth. Industrial growth is faltering, the current account deficit is widening, foreign exchange reserves are depleting and the rupee is depreciating because of financial crises .The crises originated in United States but the Indian Government has a reason to worry because there is a potential adverse impact of the crises on India. The global economic slowdown is unprecedented in scale and has severe implications on policy formulation among emerging market. Currently India has one of the largest Developing countries in the world. Strong economic growth in the last decade combined with a population of over a billion makes it one of the potentially largest markets in the future. This paper provides an overview of global financial crisis (GFC) and its impact on the Indian Economy.