COPING WITH GLOBAL MELTDOWN: INDIA’S EXTERNAL SECTOR

Öz

In 2008 the world economy landed itself in the midst of the most severe financial recession which originated in the developed countries and spread to the developing countries which were hit hard through capital reversals, rising borrowing costs, collapsing world trade and commodity prices, and subsiding remittances. India’s engagement with the global economy became deeper from the 1990s and this made it inevitable to be affected by the global meltdown. This paper attempts to analyze the impact of the global recession on the external sector of the Indian economy. A pre and post recession (2008) analysis is undertaken to see the impact on trade, capital flows, exchange rates and foreign exchange reserves and external debt. The analysis reveals that while India was adversely impacted due to the slowdown in trade, capital flows and outsourcing; the impact has not been as much as in many other Asian economies. The capital flows were soon back, as India seemed like a save haven for funds with reasonable growth and interest rates. The Indian banking and regulatory system has been credited for following prudential norms and India’s huge domestic market and fiscal stimulus have got the economy almost back on track with growth rates looking up again

Anahtar Kelimeler

• Crisis, India, External sector, Export, Capital Flows, Reserves

Kaynakça

1. Arora, Dayanand, Rathinam, Francis and Khan, Shuheb 2010. The Recent Surge in Capital
2. Inflows and Policy Options for India. retrieved from http://www.icrier.org Banik, Nilanjan 2007. India’s Exports: Is the Bull Run Over? Asia-Pacific Trade and Investment
3. Review Vol. 3, No. 2, December 2007
4. Baru, Sanjaya 2009. Strategic Implications of the Global Economic Crisis for India, ISAS Working
5. Paper No. 77 – Date: 27 July 2009
6. Chandrasekhar, C.P 2009. Sending the Money Home. www.macroscan.org
7. Chandrasekhar,C.P. and Ghosh, Jayati 2010,Global Trade in a Time of Crisis,www.macroscan.org ----------------- 2009. FDI and the Balance of Payments in the 2000s, www.macroscan.org ------------------2009 Foreign Reserves and the Rupee, www.macroscan.org
8. Chhibber, Ajay and Palanivel, Thangavel 2009. “India Manages Global Crisis But Needs Serious

9. Reforms for Sustained Inclusive Growth” Tenth Annual Conference SCID, Oct 21-23, Joseph, Mathew & Tewari, Ritika 2009. Global Crisis and India's Balance of Payments , retrieved from http://www.icrier.org
10. Joseph, Mathew 2010. Did India have its Worst Current Account Deficit in 2009-10? April 15, , retrieved from http://www.icrier.org
11. Kumar, Rajiv 2010. Global Financial and Economic Crisis: Impact on India and Policy Response, UNDP India Report,
12. Mohan, Rakesh, 2008. ‘Global Financial Crisis and Key Risks: Impact on India and Asia’, retrived from www.rbi.org.in
13. Prasad A. and, Reddy, Panduranga C. 2009. Global Financial Crisis and Its Impact on India,
14. Journal of Social Science, 21(1): 1-5
15. Reserve Bank of India 2009. Handbook of Statistics on Indian Economy, http://www.rbi.org.in
16. Roach, Stephen S. 2010. India’s Post-Crisis Reality Check. http://www.morganstanley.com
17. Mr. Sunil Shirole, Impact of Financial Crisis on Financing Exports and Imports in India, Banking & Finance, November 2008, Maharashtra Economic Development Council, pp 28-30
18. Venkitaramanan S 2008. Global financial crisis: reflections on its impact on India. The Hindu, October10, 2008, P. 11.