The Global Financial Crisis on India

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Why do you think India remained relatively insulated from the financial crises? "The contagion is truly global in a globalized world. How can the high priests of globalization in India expect to insulate the country from this all-pervasive crisis?" - By S. Shivaraman It is not right to say that a country is insulated from financial crisis in today’s globalized world. In some way or the other there will be an effect of failed programme of one country on the other. The moment we say that we are global (global meaning when we do not have any restriction on transactions with other geography’s), we become non-insulated to the financial crisis. Though the effect can come after one month or can also effect after one year or two, but it is certain that it will have some effect for sure. For example, auto industry affected in the west will have its effect on the IT industry in India. There exists a cyber-mastic effect on economies related in the globalized world. “The financial crisis in the US, the worst since the Great Depression of 1929, is threatening to reach perilous proportions. The collapse of the big five financial giants on Wall Street — Fannie Mae, Freddie Mac, AIG, Lehman Brothers and Merrill Lynch — with revenues totaling nearly $322 billion in 2007, followed by two of the largest banks — Washington Mutual (WaMu) and Wachovia — has sent shock waves through global financial markets” . Talking about the financial crisis in the U.S., which does not have a major effect on the India economy where India has a sound regulation system in the country. The regulatory system makes the country immune from the effect of financ... ... middle of paper ... ...ith the confidence that it can cope with the world from a very secure base” . Works Cited S. D. Naik , Business Daily from THE HINDU group of publications Wednesday, Oct 15, 2008 Ibid-1 Nupur Gupta, blog, wordpress.com, March 14th 2010 (http://nupurgupta.wordpress.com/), last visited on 22nd may Ibid-3 Ibid-3 Ibid-3 http://www.moneyworks4me.com/How-Sub-prime-Crisis-affected-Indian-Economy.html http://theviewspaper.net/financial-crisis-how-india-got-away-lightly/ http://www.asia-pacific-action.org/node/210 Ibid-8 Ibid-8 Ibid-7 Id-9 Id-9 http://www.newkerala.com/topstory-fullnews-29679.html Jayati Ghosh, The Global Financial Crisis, Developing Countries and India, THE GLOBAL CONTEXT,page-19 Shashi Tharoor, How India Survived the Financial Crisis, http://www.projectsyndicate.org/commentary/tharoor23/English

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