Global Financial Crises and Its Effect on India

Aziz, Ghazala (2010): Global Financial Crises and Its Effect on India. Published in: ssrn

Abstract

There were arguments and counter arguments with regard to the impact on Indian economy of the global financial meltdown. The paper examines the economic scenario in India. The belief that Indian economy was adequately insulated from such global development has been found to be only partially correct. The crises affected the economy via dwindling foreign exchange reserves as significant amount of it had to be withdrawn from equity market by the foreign institutional investors. The phenomenon resulted in the adverse effect on various key macro variables which include balance of payments and employment. India’s slow pace of lessening further controls, albeit because of political compulsions, came in handy for the economy.

• Item Type: MPRA Paper
• Language: English
• Keywords: foreign exchange reserves, global crises, BoP
• Subjects: E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates; E - Macroeconomics and Monetary Economics > E4 - Money and Interest Rates > E44 - Financial Markets and the Macroeconomy; E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook; E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E62 - Fiscal Policy

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