Open AccessImpact of the global financial crisis on the Indian economy
Author(s) -
Krishna Kumar Jaiswal,
K. C. Dubey
Publication year - 2022
Publication title -
international journal of accounting, business and finance
Language(s) - English
Resource type - Journals
ISSN - 2583-2123
DOI - 10.55429/ijabf.v1i1.13
Subject(s) - rupee , inflation (cosmology) , economics , gross domestic product , financial crisis , agriculture , exchange rate , real gross domestic product , position (finance) , index (typography) , monetary economics , international economics , economy , macroeconomics , finance , geography , physics , archaeology , theoretical physics , world wide web , computer science
This paper provides a descriptive review of the impacts of the global financial crisis on the Indian economy. While examining the growth in the gross domestic product (GDP), fiscal deficit, exports, imports, Wholesale Price Index (WPI) inflation, and the foreign exchange rates (FX), we find that the GDP has been severely impacted during the crisis period, especially during 2008-09. While the fiscal deficit continuously increased during 2008-09 and 2009-10, the exports and imports declined considerably. The WPI inflation followed a downward trend, and the rupee depreciated by approximately 20 percent during 2008. During 2008-09, the agricultural and industrial growth significantly declined, but the service sector sustained itself. The findings also reveal that the policy initiatives by the Indian government and those by the Reserve Bank of India safeguarded the Indian economy to a large extent.