Global Financial Catastrophe on Macro Economic Indicators of Indian Economy

Abstract

Global financial meltdown has shacked the whole world in terms of huge holocaust (both economic and social). This paper made an attempt to examine the Global Financial Catastrophe (GFC) and its impact on macroeconomic indicators of Indian economy. This study has used time series data of selected macro -economic variables, namely real GDP growth rates in India, Sectoral wise growth rate, Rate of Inflation (WPI), Import-Export and Trade Balance, Trends in Foreign Institutional Investments (FIIs), Trends in Foreign Direct Investment (FDI), India’s Overall Balance of Payment, Foreign Exchange Reserves in India and other variables the study period is 15 years from 1st April 2000 to 31st March 2015. The study period is divided into 3 sub periods based on pre-crisis (2000-2007), during a crisis (2007-2009), and post crisis (2009-2015). Hence, the main aim of this research paper is to capture the macroeconomic variables and its major impact on Indian economy. The present study has found that Indian economy is affected by the massive global financial recession. Finally, concluded that the Indian economy would be able to withstand the global financial turmoil.