Impact of the Global Economic and Finance Crises on India: An Analysis

Abstract

Over a decade the world economy is facing severe financial and economic crisis due to structural reforms. Globalization leads to economic transformation throughout the world which necessitates structural reforms. The Indian economy is a fast growing economy and it holds highly strong position in global hub as Indian economy registers high growth figures of economy when globally there was a heavy financial meltdown. In the early nineties, the Indian economy faced a severe Balance of Payment crisis which becomes a bottleneck for the overall progress of the nation. In such adverse situations, the policy makers decided to adopt a more liberal and global approaches in order to overcome that. Even still now it is in hard time, the rupee value was declined drastically. The solution to overcome this financial crisis is to liberalize its economic policies to widen its operations globally. But Liberalization, Privatization and Globalization brought remarkable impact on Indian economy. The recent Global Financial Crisis (2008) affected adversely and it has spared any of the countries or market sectors and has devastated all the economies, even traditionally strong economies in the world. On this backdrop, an attempt is made to analyze the impact of Global crisis on the Indian economy.