Recent Seminars and Workshops

AALOKAN

INDIA AND THE GLOBAL FINANCIAL CRISIS

            In 2008, major financial upheaval pushed the world economy into its worst Crisis in decades. It ripped through the global financial system.

            Beginning with the bankruptsy  of Lehman Brothers on Sunday, Sep. 14,2008, the Chill quickly spread beyond Wall street and beyond US borders – it disturbed markets with little or no exposure to subprime losses and gutted companies whose business seemed  far removed from finance. Many industrialized countries entered recession. Emerging economies like China, India and Brazil saw their stock markets drop precipitously and their heady economic growth rates brought to earth. The world’s poorest people faced challenges to their very survival as trade slowed and aid outlays evaporated.
           
India is part of world culture and is not invulnerable to the present crisis. As rightly said by our Prime Minister Dr. Man Mohan Singh in an interview to the leading French Daily (Quote)– “ We live in an interdependent world and the fate of all countries is related to the International Financial System”. (Unquote)
           
            India ranks among the most vulnerable in the world to speculative turbulence since she is undergoing such a dramatic economic revolution, a revolution, that along with China’s, is the talk of the world.

            Even though the commonly identified “CAUSES” of the Crisis in the US, the subprime mortagauge revolution and the extremely lose monetary policy, were not in evidence in India, India is still facing some of the same outcomes.

            Speaking to the media persons at G20 summit in Pitts Burgh, our honorable Prime Minister stated “that there is no economic crisis in India.  (Quote) It is certainly true that as a sequal to the global economic crisis our exports have suffered and that has affected the rate of growth. But even then our economy is growing at the rate of 6 to 6.5%, and so there is no crisis as such in India”. (Unquote)
           
          Is it true that inspite of the Global Melt Down, India Story still exists?

            Experts expressed the opinion that the relative freedom from the contagious spreading from the Global Tsunami  on the Indian Financial System owes much to the wise and judicious policies of our Central Bank and the Govt. of India. As is rightly mentioned by our Finance Minister, Shri.Pranab Mukharjee steps taken by the India’s Economy weather the Crisis.

            Mention may be made here to the caution exercised by the former Governor of Reserve Bank of India Dr. Y.V. Reddy and the policy of going slow on opening up new complex financial products which helped to insulate the country from a major financial crisis.
           
            Joseph E. Stiglitz, a noble laureate and a professor from the University of Columbia complementing Dr. Y.V. Reddy, said that if America had a central Bank Chief like Dr.Y.V.Reddy, the US economy would not have been in such a mess.

            We may take solace in this observation by Chief economist of the world bank. However we need to know the ground realities!!
 
Let us use this platform today to address some of the issues like  -

                                                                   Thank you
      Dr. M. Lalitha Kameswari