A Study of Post Recession Affect on Indian Economy

Globalization spreads both prosperity and distress. The global financial crisis is an outcome of deep economic recession which generally refers to business cycle contraction and slowdown activity over a long period of time. It is a situation where macro indicators like gross domestic product, employment, capital utilization, household incomes, and business profits fall, while bankruptcies and unemployment rates rise. The Global Financial Crisis is among the greatest financial challenges to the world economy and originated in the United States of America. This paper provides an overview of the global financial crisis (GFC) and its impact on the Indian economy. The researcher studied the effect of the post-World War II recession on the Indian economic system, identifying the sectors affected and the reasons thereof. The researcher used secondary sources of information, mainly from websites, news dailies (newspapers), and research publications. As a result, the global financial crises affected employment, stock and forex markets, software and IT services exports, industrial sectors, and both banking and non-banking sectors.