Global Economic Meltdown and Indian Economy

The main theme of the papers in this volume is to highlight the Economic Meltdown and Its Impact on Indian Economy. The volume, therefore, starts with a discussion of recession at global level and covers its impact on the Indian Economy. The deepest recession after the Great Depression of 1930s surfaced around August 2007 had affected financial institutions in the United States and Europe, including the shadow banking system comprising, interalia investment banks, hedge funds, private equity and structured investment vehicles. With the collapse of the Lehman Brothers in September 2008 further aggravated the situation leading to the crisis of confidence in the financial markets. The resulting heightened uncertainty cascaded into a full-blown financial crisis of global dimensions. The impact on Indian economy was not significant in the beginning. The initial effect was, in fact, positive, as the country received large Foreign Investment during September 2007 to January 2008. In fact this positive effect led to a debate on ‘decoupling’, where it, was believed that the emerging economies could remain largely insulated from the crisis and provide an alternative engine of growth to the world economy. The arguments soon proved unfounded as the global crisis intensified and spread to the emerging economies through capital and current account of the balance of payments. The different chapters in the book throw light on impact of the Global Financial/Economic crisis on specific sectors of Indian Economy Imports, Exports, Foreign Exchange, Industry, Service Sector, Infrastructure, Tourism etc. Indian Economic policy response to alleviate the impact of global financial crisis Monetary policy, foreign Exchange policy, Fiscal policy, Trade policy, Price controls etc. are discussed in one-third of the chapters. As the book deals with wide range of issues, it is highly useful to academicians, policy makers, research scholars and students besides candidates who appear for competitive and Civil service examinations.