Global Financial Crisis and the Indian Economy

Abstract

The economic reforms initiated in 1991 led Indian economy on the path of global integration. Now the global economy also has s great impact on the Indian economy. The development in the U.5 financial sector has affected America and also European Union, U.K and Asia. There are several arguments and counter-arguments on the impact of global crisis on the Indian economy. The 'Decoupling Hypothesis' holds that even if the developed economies go into the downturn, growing economies would remain unscathed. But this hypothesis does not work well in rapidly globalizing world. The present paper makes an attempt to examine the economic scenario in India and the multi/old impact of the global crisis on the Indian Economy. It also discusses the measures taken by the government to lessen the intensity of the impact.