Global Economic Crisis: Impacts, Challenges and Opportunities for India

Pacific Business Review International, Volume 6, Issue 5, November 2013

6 Pages Posted: 11 Dec 2015 Last revised: 24 Jul 2016

See all articles by Sweety

Sweety

L J Institute of Management studies

Date Written: November 1, 2013

Abstract

Today India is more integrated with the world economy through both the current and capital accounts. The unfolded global financial crisis has come in various forms and represented many challenges as well as opportunities in India. The Indian economy has shown considerable resilience to the global economic crisis by maintaining one of the highest growth rates in the world. Economic growth stood at 8.6 percent during fiscal year 2010-11. GDP growth for 2009-10 was placed at 8 percent. When compared to countries across the world, India stands out as one of the best performing economies. Although there was a clear moderation in growth from 9 percent levels to 7 percent soon after the crisis hit, in 2010-11, at 8.6 percent, GDP growth in nearing the precrisis levels and this pace makes India the fastest growing major economy after China. The downturns started in USA in September, 2008 have some negative impact on Indian economy. Despite having low exposure of toxic assets involved in the sub-prime crisis and a gradualist approach towards liberalisation of the financial sector, certain parts of financial sector were significantly affected like outflow of Foreign Institutional Investments (FII) from equity market that also led to rupee depreciation. It had adversely impacted country exports and software business. To fight with this crisis the government has also responded with some of monetary and fiscal stimulus. The present paper is an attempt to analyze the impact of recent global financial crisis on Indian economy and challenges that our economy faced and opportunities arisen from this financial global crisis.

Keywords: Global Financial Crisis, GDP, Liberalisation, Foreign Institutional

Suggested Citation

Shah, Sweety, Global Economic Crisis: Impacts, Challenges and Opportunities for India (November 1, 2013). Pacific Business Review International, Volume 6, Issue 5, November 2013, Available at SSRN: https://ssrn.com/abstract=2702204

Sweety Shah (Contact Author)

L J Institute of Management studies ( email )

SG Highway
Near Nagdev Mandir
Ahmedabad, GA Gujarat 380058
India

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
39
Abstract Views
415
PlumX Metrics