A

PROJECT REPORT
ON

THE GLOBAL ECONOMIC CRISIS: IMPACT ON INDIA AND POLICY

RESPONSES

In partial fulfilment
of Degree in Commerce
Submitted by

BAIRU PRAVEEN (1151-19-405-021)

JANGILIPURAM BHANU PRAKASH (1151-19-405-103)
BEEMAGANI SAIRAM (1151-19-405-031)
AMPAL MAHESH(1151-19-405-010)

OMEGA DEGREE COLLEGE

Habsiguda, Hyderabad 500007
2019-2022

1
 DECLARATION

I hereby declare that the work presented in this project, titled “the
global economic crisis: impact on India and policy responses” partial
fulfilment of the requirements for the award of Degree in BACHELORS
OF COMMERCE submitted to the department of Commerce, Osmania
University, Hyderabad. Is an authentic record of my research work and
it is not submitted to any other university or college or institution for
the award of any degree/diploma/certificate or published any time be-
fore. The project is drafted by me and is original to the best of my
knowledge and behalf.

Date.
Place:

2
 ACKNOWLEDGEMENT
It is my privilege to express my deep sense of gratitude to all those
people who have given their valuable time and support, without which
this project titled “the global economic crisis: impact on India and
policy responses” could not have been successfully completed by me. I
profoundly thank, Department of Commerce, University College of
Commerce & Business Management, HYDERABAD, for their continuous
encouragement, which helped me to complete the study successfully. I
would like to thank my faculty and guide Prof Mrs Radhika for valuable
guidance and encouragement in the completion of this project also
thank my friends and family members for extending their help for com-
pletion of this project.

ABSTRACT

3
“The Global Economic Crisis: Is The Main Problem Which Is Impacting
India In Many Ways If Economic Has Been Lost To The Country The
Goods And Currency Values Of The country decreases Automatically.
The First Impact Of The Global Crisis In India Was Felt In The Stock Mar-
ket In January 2008. This Came through The Reversal Of Inflows From
Foreign Institutional Investors Into The Country. India Has Received
About Us$17.7 Billion As Net Equity Investment Inflows From During
2007. As Per Revised Estimates of 2021 The Real GDP Growth Of The
Country Is Estimated 21.4% For The First Quarter Of FY22.

In This Project, The Primary Data Is Collected With The Help Of Ques-
tionnaires And Secondary Data Through Market Reports, Online Sur-
veys And Books. Percentage Analysis Will Be Used To Analyse The Data.
The Analysis Will Be Useful For The Company To Know More About
Global Economic Crisis. As Per Our Discussions and Abstract of Data
from Different Websites Of https://www.ibef.org/economy/indian-
economy-overview WE CAN GET TO KNOW THAT (According to the De-
partment for Promotion of Industry and Internal Trade (DPIIT), foreign
direct investment (FDI) equity inflows to India reached US$ 72.12 billion
in 2020-21 (until January 2021) while the cumulative FDI equity inflows
to the country from April 2000 to January 2021 reached US$ 545.0 bil-
lion)

4
 LIST OF TABLE CONTENTS
S no CHAPTERS PAGE NO

1. INTRODUCTION 6-15

2. RESEARCH METHODOLOGY 16-22

3. REVIEW OF LITERATURE 23-32

4. DATA ANALYSIS 33-38

5. FINDINGS, CONCLUSION, 39-44

SUGGESTIONS, BIBILOGRAPHY

6. QUESTIONAIRE AND REFERENCE 45-46

5
 CHAPTER-1
INTRODUCTION

6
 INTRODUCTION

The Indian economy looked to be relatively insulated from the

global financial crisis that started in August 2007 when the subprime
mortgage crisis first surfaced in the United States (US). In fact, the Re-
serve Bank of India (RBI) was raising interest rates until August 2008
with the explicit objective of cooling the economy and bringing down
the gross domestic product (GDP) growth rate, which visibly had moved
above the rate of potential output growth and was contributing to the
build-up of inflationary pressures in the economy.1 But when the col-
lapse of Lehman Brothers on 23 September 2008 morphed the US fin-
ancial meltdown into a global economic downturn, the impact on the
Indian economy was almost immediate. External credit flows suddenly
dried up and the overnight money market interest rate spiked to above
20% and remained high for the next month. It is perhaps judicious to
assume that the impacts of the global economic downturn on the In-
dian economy are still unfolding. Against this backdrop, this paper at-
tempts an analysis of the impact of the global financial crisis on the In-
dian economy and suggests some policy measures to put the economy
back on track. Broadly, the paper has been divided into six sections.
After summarizing the severity of the current crisis in Section 2, Section
3 deals with the impact of the crisis on the Indian economy. Section 4
discusses the monetary and fiscal policy responses to the crisis, while
Section 5 provides a critical assessment of the policy responses. In the
final section we recommend some policy measures that are needed to
reverse the downturn.

7
1.1 SEVERITY OF THE CURRENT FINANCIAL CRISIS: Banking and financial
crises have been a regular feature of modern economic history. According to
one estimate, there have been 86 banking crises since the Great Depression
that have spread beyond national borders. According to a World Bank study
in 2001 2 the world has witnessed as many as 112 systemic banking crises
from the late 1970s to early 2001. Most crises, including the current one,
share some common features. Some general examples include a search for
increasingly higher yields in financial markets, a lax regulatory regime, a mis-
match in appetite for risk and the capacity for bearing it, and the con-
sequent build-up of asset bubbles, usually in the real estate sector, which
for various reasons is overlooked by the regulators. The recent financial sec-
tor crisis shares most, if not all, of these features. However, what makes the
current crisis exceptional is that it emerged at the very epicentre of global
capitalism, the US, and its contagion spread very quickly to the entire global
economy, unlike previous crises that were usually confined to a region or a
small number of countries. Economies like India and the People’s Republic
of China (PRC), where the financial sectors were not as integrated with the
global financial system, were spared the first round adverse effects of the
current crisis and their banks were left mostly unaffected. However, these
giant economies and their Asian neighbours could not escape the second
round effects that severely impacted their trade flows due to the collapse of
output and trade in advanced economies. The severity of the current crisis
can be gauged by the steep decline in the equity markets of advanced eco-
nomies. The bursting of the sub-prime housing bubble caused Wall Street to
lose a staggering US$8 trillion in market capitalization in a very short time
(Brunnermier 2009). Significantly higher in periphery economies as com-
pared to US markets (Table 1). According to Eichengreen and O’Rourke
(2009) global stock markets fell faster during the current crisis than in 1929.
Fair value accounting rules require banks and others to value their assets at
current market prices. The broad aim of fair value accounting is to enable in-
vestors, financial system participants, and regulators to better understand
the risk profile of securities in order to better assess their position. In order
to achieve this, financial statements must, in the case of instruments eco-
nomically.

8
 Stock Market Changes June–
Exchange Rate Changes
December 2008 (%) June–December 2008 vis-à-
vis US$ (%)

PRC -48 -1

HONGKONG -40 -1

INDIA -41 -13

REPUBLIC OF KOREA -36 -20

ARGENTINA -51 -13

BRAZIL -49 -31

MEXICO -29 -26

JAPAN -36 -18

EUROZONE -37 -11

US(S&P) -36 -

Table 1: Stock Market Crash and Exchange Rate Changes in Selected Countries.

9
The financial crisis soon morphed in to a full-fledged global economic down-
turn as credits markets froze, aggregate demand in all advanced econom-
ies fell, and commodity prices crashed, forcing exporters to shelve expendit-
ure and lay off workers in large numbers. Consequently, industrial produc-
tion collapsed worldwide. In the last quarter of the calendar year 2008, ad-
vanced economies and large economies like India and the PRC witnessed a
contraction in their industrial production. In some of the major export-ori-
ented countries like Japan, Germany, and Brazil, industrial output contrac-
ted more than 10% during the third and fourth quarters of fiscal year (FY)
2008. The decline in industrial output made labour retrenchment and sur-
ging unemployment almost inevitable. According to the International Labour
Organisation’s (2009) Global Employment Trends Report more than 50 mil-
lion people are expected to lose their jobs due to the crisis. The severity
and suddenness of the crisis can also be judged from the IMF’s forecast for
the global economy. During the last 10 months (July 2008 to April 2009), the
IMF revised its forecasts four times, all in the negative direction. In July
2008, it projected a growth rate of 3.9% for the world economy for 2009.
However, this figure was reduced to 2.2% in November 2008 and further to
0.5% in January 2009. Finally in April 2009, for the first time in 60 years,
the IMF predicted a global recession with negative growth of 1.3% for
world GDP in 2009. Comparisons with the Japanese experience since the
bursting of its own real estate bubble in the late 1980s and the consequent
stagnation over the 1990s have been drawn to suggest a possible long
period of weak economic activity in advanced economies. Initially the IMF
projected a positive growth rate of 1.8% for 2010 indicating a somewhat
weak V-shape recovery. But by July 2009 this had changed and the possible
recovery in 2010 was forecast to be much stronger. Because the recession in
developed countries is expected to continue, developing countries are anti-
cipated to lead the global turnaround. Transmission of the Crisis to the In-
dian Economy with India’s increased linkage with the world economy, India
could not be expected to remain immune to the global crisis or be de-
coupled from the global economy. While it is true that the Indian banking

10
sector remained largely unaffected because of its very limited operations
outside India or exposure to sub-prime lending by foreign investment banks,
the global crisis has affected India through three distinct channels. These
channels are financial markets, trade flows, and exchange rates. The finan-
cial sector includes the banking sector, equity markets (which are directly
affected by foreign institutional investment [FII] flows), external commercial
borrowings (ECBs) that drive corporate investments, FDI, and remittances.
The global crisis had a differentiated impact on these various sub-sectors of
the financial sector. Given prudent regulations and a proactive regulator, 7
the Indian banking sector has remained more or less unaffected, at least
directly, by the global crisis. The imposition by the RBI of a higher provision-
ing requirement on commercial bank lending to the real estate sector
helped to curb the growth of a real estate price bubble. This is one of the
few global examples of a countercyclical capital provisioning requirement by
any central bank. In general, Indian banks were not overly exposed to sub-
prime lending. Only one of the larger private sector banks, ICICI Bank, was
partly exposed but it managed to thwart a crisis because of its strong bal-
ance sheet and timely action by the government, which virtually guaran-
teed its deposits. The banking sector as a whole has maintained a healthy
balance sheet. In fact, during the third quarter of FY2008, which was a night-
mare for many big financial institutions around the world, banks in India an-
nounced encouraging results. Against an absolute decline in the profitability
of non-financial corporate enterprises, the banking sector witnessed a jump
of 43% in its profitability (Figure 3). A ban on complex structures like syn-
thetic securitization coupled with a close monitoring of appropriate lending
norms by RBI also ensured a better quality of banking assets. The non-per-
forming assets as a ratio to gross advances have remained well within
prudential norms (Figure 4). Further, with an average capital risk weighted
assets ratio (CRAR) of 13%, Indian banks are well capitalized and better
placed to weather the economic downturn.

11
 1.2 NEED OF STUDY
In the present scenario, we can see the how the global economy loss effect-
ing the Indian economy in different ways like unemployment, poverty, bank-
ing, stock markets, and different capital outflows. In this mainly banking sys-
tem plays key role in effecting Indian economy comparing to other coun-
tries. For example in our Indian currency ₹1 is equals to ($72) dollars in
United States, ₹1is equals to (Rp188.81) in comparing to currency only we
can see Indian currency in least value compared to other countries. India
needs to increase its rate of employment growth and create 90 million
non-farm jobs between 2023 and 2030s, for productivity and economic
growth according to McKinsey Global Institute. The net employment rate
needs to grow by 1.5% per year from 2023 to 2030 to achieve 8-8.5% GDP
growth between 2023 and 2030. All the above activities are effecting in gen-
erating the loss to Indian economy.
The importance of the above scenario is to show the how the highest
bank loans where effecting the Indian economy to loss and India to be fall in
poverty line mainly in every country banks play crucial in developing the
economy of the country depending upon the there interest rates and the loan
amount given by them and the tenure left to pay the amount. Let us see it
with an example

NIRAV MODI THE PUNJAB NATIONAL BANK FRAUD:

On February 14, 2018, the Indian banking sector was rocked by an enormous
bank fraud, the modus operandi of which was unheard until then. That day,
Punjab National Bank (PNB) disclosed a Rs 11,400 crore fraud at one of its
Mumbai branches.
The bank filed a complaint with the Central Bureau of Investigation (CBI)
saying billionaire jeweler Nirav Modi connived with some of its officials to
defraud the bank using fake bank guarantees. Fake letters of undertakings
were created to draw money from foreign branches of Indian banks on be-
half of Indian banks linked to Modi and the Gitanjali Group.

12
Current status
Like Malaya, Modi too left the country just before bank disclosed the scam.
He is believed to have left India in January 2018 while PNB announced the
scam a month later, in February. In March 2019, Modi was arrested in Lon-
don and is in custody since then.
In an exclusive interview with Money control in April, PNB Managing Direc-
tor and CEO Mallikarjuna Rao said the bank has not recovered anything sig-
nificant from the Nirav Modi scam.
“So far, nothing. Only thing is that assets worth Rs 1,000 crore has been con-
fiscated by the CBI recently. They have given permission to us to apply to
the courts for the sale of these properties. We have already done that. But
there are some legal hurdles before we go for the auction,” Rao said. How-
ever, impact in the balance sheet has been addressed fully because we have
provided (for the losses) fully, Rao said

1.3 OBJECTIVES OF STUDY

 To determine the problems public due to interest rates changes in
there banks year to year.
 To determine the changes taken by bank to save the Indian economy
from crisis.
 To determine the analysis of the year to year lose of the banks that
may effecting the Indian economy from another end.
 To determine the Indian currency value compared to different coun-
tries.
 To determine the changes taking place in India due to economy or rev-
enue crisis.

1.4 LIMITATIONS
13
1. Unemployment
Despite rapid economic growth, unemployment is still an issue in both rural
and urban areas. The fast rate of economic growth has left unskilled workers
behind, and they have struggled to find work in growing industries. In 2017,
the official unemployment rate was just below 5%. However, a report by the
OECD found over 30% of people aged 15-29 in India are not in employment,
education or training (NEETs). Livemint reported on March 6, 2017. With,
little if any government welfare support for the unemployed, it leads to dire
poverty.

2. Poor educational standards

Although India has benefited from a high % of English speakers, (important
for call center industry) there is still high levels of illiteracy amongst the pop-
ulation. It is worse in rural areas and amongst women. Over 50% of Indian
women are illiterate. This limits economic development and a more skilled
workforce.

3. Poor Infrastructure
Many Indians lack basic amenities lack access to running water. Indian public
services are creaking under the strain of bureaucracy and inefficiency. Over
40% of Indian fruit rots before it reaches the market; this is one example of
the supply constraints and inefficiency’s facing the Indian economy.

4. Balance of Payments deterioration

Although India has built up large amounts of foreign currency reserves, the
high rates of economic growth have been at the cost of a persistent current
account deficit. In late 2012, the current account reached a peak of 6% of
GDP. Since then there has been an improvement in the current account. But,
the Indian economy has seen imports growth faster than exports. This
means India needs to attract capital flows to finance the deficit. Also, the
large deficit caused the depreciation in the Rupee between 2012 and 2014.
Whilst the deficit remains, there is always the fear of a further devaluation
in the Rupee. There is a need to rebalance the economy and improve the
competitiveness of exports.

14
5. High levels of private debt
Buoyed by a property boom the amount of lending in India has grown by
30% in the past year. However, there are concerns about the risk of such
loans. If they are dependent on rising property prices it could be problem-
atic. Furthermore, if inflation increases further it may force the RBI to in-
crease interest rates. If interest rates rise substantially it will leave those in-
debted facing rising interest payments and potentially reducing consumer
spending in the future

6. Inequality has risen rather than decreased.

It is hoped that economic growth would help drag the Indian poor above the
poverty line. However, so far economic growth has been highly uneven ben-
efiting the skilled and wealthy disproportionately. Many of India’s rural poor
are yet to receive any tangible benefit from India’s economic growth. More
than 78 million homes do not have electricity. 33% (268million) of the popu-
lation live on less than $1 per day. Furthermore with the spread of television
in Indian villages the poor are increasingly aware of the disparity between
rich and poor.

7. Large Budget Deficit

India has one of the largest budget deficits in the developing world. Exclud-
ing subsidies, it amounts to nearly 8% of GDP. Although it is fallen a little in
the past year. It still allows little scope for increasing investment in public
services like health and education.

8. Rigid labor Laws

As an example Firms employing more than 100 people cannot fire workers
without government permission. The effect of this is to discourage firms
from expanding to over 100 people. It also discourages foreign investment.
Trades Unions have an important political power base and governments of-
ten shy away.

15
 CHAPTER-2
RESEARCH METHODOLOGY

RESEARCH METHODOLODY

IMPACTS OF THE GLOBAL ECONOMIC CRISIS ON INDIA

16
The main impact of the global financial turmoil in India has emanated from
the significant change experienced in the capital account in 2008-09, relative
to the previous year. Total net capital flows fell from US$17.3 billion in April-
June 2007 to US$13.2 billion in April-June 2008. Nonetheless, capital flows
are expected to be more than sufficient to cover the current account deficit
this year as well. While Foreign Direct Investment (FDI) inflows have contin-
ued to exhibit accelerated growth (US$ 16.7 billion during April-August 2008
as compared with US$ 8.5 billion in the corresponding period of 2007),
portfolio investments by foreign institutional investors (FIIs) witnessed a net
outflow of about US$ 6.4 billion in April-September 2008 as compared with
a net inflow of US$ 15.5 billion in the corresponding period last year.74 Sim-
ilarly, external commercial borrowings of the corporate sector declined from
US$ 7.0 billion in April-June 2007 to US$ 1.6 billion in April-June 2008, par-
tially in response to policy measures in the face of excess flows in 2007- 08,
but also due to the current turmoil in advanced economies.
(b) Impact on Stock and Forex Market:
With the volatility in portfolio flows having been large during 2007 and 2008,
the impact of global financial turmoil has been felt particularly in the equity
market. Indian stock prices have been severely affected by foreign institu-
tional investors' (FIIs') withdrawals. FIIs had invested over Rs 10,00,000 crore
between January 2006 and January 2008, driving the Sensex 20,000 over the
period. But from January, 2008 to January, 2009 this year, FIIs pulled out
from the equity market partly as a flight to safety and partly to meet their
redemption obligations at home. These withdrawals drove the Sensex down
from over 20,000 to less than 9,000 in a year. It has seriously crippled the li-
quidity in the stock market. The stock prices have tanked to more than 70
per cent from their peaks in January 2008 and some have even lost to
around 90 per cent of their value. This has left with no safe haven for the in-
vestors both retail and institutional. The primary market got derailed and
secondary market is in the deep abyss.

17
(c) Impact on the Indian Banking System
One of the key features of the current financial turmoil has been the lack of
perceived contagion being felt by banking systems in emerging economies,
particularly in Asia. The Indian banking system also has not experienced any
contagion, similar to its peers in the rest of Asia. The Indian banking system
is not directly exposed to the sub-prime mortgage assets. It has very limited
indirect exposure to the US mortgage market, or to the failed institutions or
stressed assets. Indian banks, both in the public sector and in the private
sector, are financially sound, well capitalised and well regulated. The aver-
age capital to risk-weighted assets ratio (CRAR) for the Indian banking sys-
tem, as at end-March 2008, was 12.6 per cent, as against the regulatory
minimum of nine per cent and the Basel norm of eight percent. A detailed
study undertaken by the RBI in September 2007 on the impact of the sub-
prime episode on the Indian banks had revealed that none of the Indian
banks or the foreign banks, with whom the discussions had been held, had
any direct exposure to the sub-prime markets in the USA or other markets.
However, a few Indian banks had invested in the collateralised debt obliga-
tions (CDOs)/ bonds which had a few underlying entities with sub-prime ex-
posures.76 Thus, no direct impact on account of direct exposure to the sub-
prime market was in evidence.
(e) Impact on Employment
Industry is a large employment intensive sector. Once, industrial sector is
adversely affected, it has cascading effect on employment scenario. “The
services sector has been affected because hotel and tourism have significant
dependency on high-value foreign tourists. Real estate, construction and
transport are also adversely affected. Apart from GDP, the bigger concern is
the employment implications.” A survey conducted by the Ministry of La-
bour and Employment states that in the last quarter of 2008, five lakh work-
ers lost jobs. The survey was based on a fairly large sample size across sec-
tors such as Textiles, Automobiles, Gems & Jewellery, Metals, Mining, Con-
struction, Transport and BPO/ IT sectors. Employment in these sectors went
down from 16.2 million during September 2008 to 15.7 million during

18
December 2008.81 Further, in the manual contract category of workers, the
employment has declined in all the sectors/ industries covered in the survey.
(f) Impact on poverty
The economic crisis has a significant bearing on the country's poverty scen-
ario. The increased job losses in the manual contract category in the manu-
facturing sector and continued layoffs in the export sector have forced many
to live in penury. The World Bank has served a warning through its report,
“The Global Economic Crisis: Assessing Vulnerability with a Poverty Lens,”
which counts India among countries that have a “high exposure” to in-
creased risk of poverty due to the global economic downturn. Combined
with this is a humanitarian crisis of hunger. The Food and Agriculture Organ-
ization said that the financial meltdown has contributed towards the growth
of hunger at global level. At present, 17 per cent of the world's population is
going hungry. India will be hit hard because even before meltdown, the
country had a staggering 230 million undernourished people, the highest
number for any one country in the world.
(d) Impact on Industrial Sector and Export Prospect:
The financial crisis has clearly spilled over to the real world. It has slowed
down industrial sector, with industrial growth projected to decline from
8.1 per cent from last year to 4.82 per cent this year. The service sector,
which contributes more than 50 per cent share in the GDP and is the prime
growth engine, is slowing down, besides the transport, communication,
trade and hotels & restaurants sub-sectors. In manufacturing sector, the
growth has come down to 4.0 per cent in April-November, 2008 as com-
pared to 9.8 per cent in the corresponding period last year. Sluggish export
markets have also very adversely affected export-driven sectors like gems
and jewellery, fabrics and leather, to name a few. For the first time in
seven years, exports have

19
 2.1 SCOPE OF THE STUDY
India’s Crisis Responses and Challenges:
State of Economy in Crisis Time:
There have been several comforting factors going into the slowdown. First,
our financial markets, particularly our banks, have continued to function
normally. Second, India’s comfortable foreign exchange reserves provide
confidence in our ability to manage our balance of payments notwithstand-
ing lower export demand and dampened capital flows. Third, headline infla-
tion, as measured by the wholesale price index (WPI), has declined sharply.”
Consumer price inflation too has begun to moderate. Fourth, because of
mandated agricultural lending and social safety-net programmes, rural de-
mand continues to be robust”. After averaging nine per cent growth over the
last four years, economic activity in India has slowed since the last quarter of
2008. And, the slowdown caused by the painful adjustment to abrupt
changes in the international economy had resulted in making changes in the
growth projections. The Economic Advisory Council to the Prime Minister in
its review of the economy for the year 2008-09 has revised the GDP growth
to 7.1 per cent. However, the Annual Policy Statement of RBI has projected
real GDP growth of 6.0 per cent for 2009/10. Domestic demand, in the form
of both private consumption and investment expenditure, has slackened al-
though government final consumption rose on account of discretionary
fiscal stimulus measures. The global crisis brought to the fore the strong in-
teractions between funding liquidity and market conditions. Both the Gov-
ernment and the Reserve Bank responded to the challenge of minimising
the impact of the crisis on India in a coordinated and consultative manner.

RBI’s Crisis Response

On the financial side, the Reserve Bank of India took a series of measures in
matching risk management with fiduciary and regulatory actions. The Re-

20
serve Bank’s policy response was aimed at containing the contagion from
the global financial crisis while maintaining comfortable domestic and forex
liquidity. The Reserve Bank shifted its policy stance from monetary tighten-
ing in response to the elevated inflationary pressures in the first half of
2008-09 to monetary easing in response to easing inflationary pressures
and moderation of growth engendered by the crisis. Through the Reserve
Bank’s actions, the cumulative amount of primary liquidity potentially avail-
able to the financial system is about 7 per cent of GDP. Taking a cue from
the Reserve Bank’s monetary easing, most banks have reduced their deposit
and lending rates. Besides, a calibrated regulatory framework was put in
place by the RBI to address the issue of systemic risk, which included
prudential capital requirements, exposure norms, liquidity management, as-
set liability management, creation of entity profile and reporting require-
ments, corporate governance and disclosure norms for non-banking finance
companies defined as systemically important.
Government’s Crisis Response:
The Government launched three fiscal stimulus packages between Decem-
ber 2008 and February 2009. These stimulus packages came on top of an
already announced expanded safety-net programme for the rural poor, the
farm loan waiver package and pay-out following the Sixth Pay Commission
Report, all of which added to stimulating demand. The combined impact of
these fiscal measures is about 3 per cent of GDP.There are several chal-
lenges in the direction of implementing the fiscal stimulus packages, particu-
larly stepping up public investment; revival of private investment demand;
unwinding of fiscal stimulus in an orderly manner; maintaining the flow of
credit while ensuring credit quality; preserving financial stability along with
provision of adequate liquidity; and ensuring an interest rate environment
that supports the return of the economy to a high growth path. It is believed
that the fiscal and monetary stimulus measures initiated during 2008- 09
coupled with lower commodity prices will cushion the downturn by stabiliz-
ing domestic economic activity. On balance, real GDP growth for 2009-10 is
placed at around 6.0 per cent. Inflation, as measured by variations in WPI, is
21
projected to be around 4.0 by end-March, 2010. Consumer price inflation
too is declining, albeit less sharply. Notwithstanding several challenges,
the Indian economy remains resilient with well-functioning markets and
sound financial institutions. The macro-economic management has helped
in maintaining lower volatility in both financial and real sectors in India rel-
ative to several other advanced and emerging market economies. The Gov-
ernment pursued the opening of the economy and globalisation in a way
that blend the market and the state in a more judicious way than some of
the other economies.

22
 CHAPTER-3
REVIEW OF LITERATURE

23
2.0 REVIEW OF LITERATURE
The Indian economy exhibited broad based recovery in the second half of
2009-10 from the slowdown that had started in the second half of 2008-09.
Despite deficient monsoon and the fragile global recovery, India achieved
7.4 per cent growth in GDP in 2009-10, one of the highest in the world. The
focus of macroeconomic policies was on management of the recovery. The
expansionary fiscal stance helped offset the impact of sluggish private con-
sumption and investment demand on economic growth. The accommodat-
ive monetary policy stance of the Reserve Bank, besides ensuring non-dis-
ruptive financing of the fiscal plans, created an overall liquidity and interest
rate condition that was conducive for growth. The stable financial system of
India continued to have a favourable impact on the overall business confid-
ence, while also ensuring availability of resources from banks, non-banks
and markets to meet the financing needs of the recovery. However, infla-
tionary conditions changed significantly during the course of the year. After
remaining subdued during the first half of the year, headline inflation spiked
in the second half, initially driven by high food prices, but turning more gen-
eralised thereafter over successive months. The policy dilemma of contain-
ing inflation while supporting growth warranted reprioritisation of the policy
goals. Stronger and broad-based recovery in growth provided necessary
headroom for the gradual unwinding of monetary policy stimulus. In the
second half, the need for faster return to the path of fiscal consolidation was
generally recognised in view of the potential adverse implications of high
fiscal deficit for medium-term growth, inflation and financial market condi-
tions. The Union Budget for 2010-11, accordingly, announced plans for the
beginning of the process of gradual fiscal exit.

3.0 COMPANY PROFILE:

24
COMPANY BACKGROUND:
NAME: PUNJAB NATIONAL BANK
LOCATION: BANDRA-KALANAGAR, MMRDA BUILDING, MUMBAI MAHA-
RASTRA, 400051
Punjab National Bank (abbreviated as PNB) is an Indian Public sector
bank headquartered in Delhi, India, it is under the ownership of the Ministry
of Finance, government of India. The bank was founded in May 1894 and is
the second largest government-owned bank in India, both in terms of its
business volumes and its network. The bank has over 180 million customers,
12,248 branches, and 13,000+ ATMs
PNB has a banking subsidiary in the UK (PNB International Bank, with seven
branches in the UK), as well as branches in Hong Kong, Kowloon, Dubai,
and Kabul. It has representative offices in Almaty (Kaza-
khstan), Dubai (United Arab Emirates), Shanghai (China), Oslo (Norway),
and Sydney (Australia). In Bhutan, it owns 51% of Druk PNB Bank, which has
five branches. In Nepal, PNB owns 20% of Everest Bank, which has 50
branches. PNB also owns 41.64% of JSC (SB) PNB Bank in Kazakhstan, which
has four branches.

Punjab National Bank is a PSU working under the government of India regu-
lated by the Reserve Bank of India Act, 1934 and the Banking Regulation Act,
1949. It was registered on 19 May 1894 under the Indian Companies Act,
with its office in Anarkali Bazaar, in pre-independent India (present-day Pak-
istan). The founding board was drawn from different parts of India profess-
25
ing different faiths and of varying backgrounds, with the common objective
of creating a truly national bank that would further the economic interest of
the country. PNB's founders included several leaders of the Swadeshi move-
ment such as Dyal Singh Majithia and Lala Harkishen Lal, Lala Lalchand, Kali
Prosanna Roy, E. C. Jessawala, Prabhu Dayal, Bakshi Jaishi Ram, and Lala
Dholan Dass. Lala Lajpat Rai was actively associated with the management
of the Bank in its early years. The board first met on 23 May 1894. The bank
opened for business on 12 April 1895 in Lahore.
PNB is the first Indian bank to have been started solely with Indian capital
that survives to the present earlier Oudh Commercial Bank was established
in 1881, but failed in 1958.

 ◊ At the Partition of India and the creation of Pakistan, PNB lost

its premises in Lahore, but continued to operate in Pakistan. Par-
tition forced PNB to close 92 offices in West Pakistan, one-third
of its total number of branches, and which held 40% of the total
deposits. PNB still maintained a few caretaker branches. On 31
March 1947, even before Partition, PNB had decided to leave
Lahore and transfer its registered office to India; it received per-
mission from the Lahore High Court on 20 June 1947, at which
time it established a new head office at Under Hill Road, Civil
Lines in New Delhi. Lala Yodh Raj was the Chairman of the
Bank.

in 1951, PNB acquired the 39 branches of Bharat Bank (est.

1942). Bharat Bank became Bharat Nidhi Ltd. In 1960, PNB
again shifted its head office, this time from Calcutta to Delhi. In
1961, PNB acquired Universal Bank of India, which Ramakrishna
Jain had established in 1938 in Dalmianagar, Bihar. PNB also
amalgamated Indo Commercial Bank (est. 1932 by S. N. N.
Sankaralinga Iyer) in a rescue. In 1963, The Burmese revolution-
ary government nationalised PNB's branch in Rangoon
(now Yangon). This became People's Bank No. 7. After the Indo-
Pak war of 1965, the government of Pakistan seized all the of-
26
fices in Pakistan of Indian banks in September 1965. PNB also
had one or more branches.

◊ In 2003 PNB took over Nedungadi Bank, the oldest private

sector bank in Kerala. At the time of the merger with PNB,
Nedungadi Bank's shares had zero value, with the result that its
shareholders received no payment for their shares. PNB also
opened a representative office in London. In 2004, PNB estab-
lished a branch in Kabul, Afghanistan, a representative office in
Shanghai, and another in Dubai. PNB also established an alli-
ance with Everest Bank in Nepal that permits migrants to transfer
funds easily between India and Everest Bank's 12 branches in
Nepal. Currently, PNB owns 20% of Everest Bank. Two years
later, PNB established PNBIL – Punjab National Bank (Interna-
tional) – in the UK, with two offices, one in London, and one in
Southall. Since then it has opened more branches, this time in
Leicester, Birmingham, Ilford, Wembley, and Wolverhampton.
PNB also opened a branch in Hong Kong. In January 2009, PNB
established a representative office in Oslo, Norway. PNB hopes
to upgrade this to a branch in due.
The Punjab National Bank Fraud Case 2018
fraudulent letter of undertaking worth ₹11,356.84
crore (US$1.4 billion) issued by the Punjab National Bank at its Brady
House branch in Fort, Mumbai; making Punjab National Bank liable
for the amount. The fraud was allegedly organized by jeweller and de-
signer Nirav Modi. Nirav, his wife Ami Modi, brother Nishal Modi and
uncle Mehul Choksi, all partners of the firms, M/s Diamond R US, M/s
Solar Exports and M/s Stellar Diamonds; along with PNB officials and
employees, and directors of Nirav Modi and Mehul Choksi's firms have
all been named in a chargesheet by the CBI. Nirav Modi and his family
absconded in early 2018, days before the news of the scam broke
in India. India's Enforcement Directorate has begun attaching assets of
the accused and is seeking to immediate confiscation under the Fugit-
ive Economic Offenders Ordinance.
27
Nirav is on the Interpol's wanted list for criminal conspiracy, criminal
breach of trust, cheating and dishonesty including delivery of prop-
erty, corruption, money laundering since February 2018. In March 2019,
Nirav was arrested in central London by UK authorities.
The bank initially said that two of its employees at the branch were involved
in the scam, as the bank's core banking system was bypassed when the cor-
rupt employees issued LOUs to overseas branches of other Indian banks, in-
cluding Allahabad Bank, Axis Bank, and Union Bank of India, using the in-
ternational financial communication system, SWIFT. The transactions were
noticed by a new employee of the bank. The bank then complained to the
CBI, who is currently investigating the scam apart from ED and Reserve
Bank of India. On a later date, CBI named key officials Usha Ananthasubra-
manian, former CEO of PNB, executive directors KV Brahmaji Rao and Sanjiv
Sharan in a chargesheet holding them responsible for failure to implement
several circular and caution notices issued by the RBI regarding the reconcili-
ation of SWIFT messages and core banking systems. In August 2019, The
Central Bureau of Investigation (CBI) has moved an application in the special
CBI court, seeking to declare fugitive businessman Nirav Modi, his brother
Neeshal Modi and a close associate Subhash Parab proclaimed offenders
and to attach their properties. All three declared 'wanted' by the CBI in its
charge sheet in the Rs 13,700 crore PNB scam. Though the agency last year
obtained warrants against them, they couldn't execute as the accused fled
India before the case registered in February.
Nirav Modi legal team has made four bail applications, which have been re-
jected each time due to Modi deemed a flight risk. Modi, who is prisoned at
Wands worth prison in south-west London since March 2019 which ex-
tended till September 19 and later further remanded to judicial custody until
October 17 by a UK court which said it was working towards his Five-day ex-
tradition trial hearing for May 11–15, 2020. and he must appear via video
link before.

In September 2019, Antigua and Barbuda Prime Minister Gaston

Browne said Fugitive diamantine Mehul Choksi of the Gitanjali Group is a
"crook" and repatriated to India after he exhausts all legal options. Mehul

28
Choksi, who is currently in the Caribbean nation of Antigua, told the high
court that he left India for medical treatment and not to avoid prosecution
in the case. He said he would return to India as soon as he is medically fit to
travel.

PROFIT AND LOSSS BAR GRAPH OF PUNJAB NATIONAL BANK

FROM2016-21
5

4.5

3.5

2.5

1.5

0.5

0
2016-17 2018-19 2019-20 2020-21

LOSS PROFIT INTREST RATES

Power (INTREST RATES) FIXED DEPOSITS

29
 From the above bar graph and above graph given by the RBI Bank on
loans of the PNB bank we can see there that in the year the interest rates if
the bank and fixed deposits where normal rate of 36% by 100% but when
the highest loan acquired by the nirav modi in 2018 of amount 11,500
crores the people not even trusted the PNB bank they didn’t made fixed de-
posits so there is no way for the bank to cover the loss so on when financial
year where started in 2019 they decided to increase the interest rates, so on
that the common people not afforded that interest to pay the amount.
Mainly this effected tax payers to hide There income from income
tax department, the Indian economy get in the trouble to rotate the revenue in
different ways the India. Nearly 300 lakhs crores In Indian currency.

30
INCOME TAX RESPONSE ON PNB BANK FRAUD SCAM

In further trouble for beleaguered jewelry designer Nirav Modi, the In -

come Tax Department today provisionally attached 29 properties and 105
bank accounts of the diamond merchant, his family and firms as part of its
tax evasion probe, officials said. The department also slapped the new
anti-black money act against him for allegedly holding illegal assets
abroad.
The Black Money (Undisclosed Foreign Income and Assets) and Imposition
of Tax Act, 2015 deals with cases of overseas illegal assets, which till re-
cently were probed under the Income Tax Act, 1961.
The new legislation has provisions for a steep 120 per cent tax and penalty
on undisclosed foreign assets and income, besides carrying a jail term of
up to 10 years.
The taxman also filed a charge sheet against Modi before a special court in
Mumbai under sections 276 C (1) [wilful attempt to evade tax], 277 A
(false statement in verification), 278 B (offences by companies) and 278 E
(presumption as to culpable mental state) of the Income Tax Act, 1961.

31
MANAGING DIRECTORS AND CHIEF EXECUTIVE OFFICER
OF PNB BANK
Shri ATUL Kumar GOEL he was holding the position of Managing Director &
CEO of UCO Bank. Before his elevation as MD & CEO of UCO Bank, he
was Executive Director in Union Bank of India 15.09.2016 to 01.11.2018.

Executive Director Of Punjab National Bank, Shri Sanjay Kumar Shri Sanjay
Kumar assumed the charge as Executive Director of the Punjab National
Bank on April 01, 2020. Before taking up this assignment, he was Executive
Director of United Bank of India.

Executive Director Of Punjab National Bank, Shri Vijay Dube Shri Vijay
Dube has been appointed as Executive Director of Punjab National Bank
(PNB) and has assumed charge 01st April, 2020. Prior to this, he was Execut-
ive Director of erstwhile Oriental Bank of Commerce from 01st November
2018 to 31st March 2020.

Executive Director Of Punjab National Bank, Shri Swarup Kumar Saha

Shri Swarup Kumar Saha assumed the charge as Executive Director of Pun-
jab National Bank on March 10, 2021. Before taking up this assignment, he
was Zonal Manager (Chief General Manager) Lucknow Zone, in the Bank
since June 2020.

Director of Punjab National Bank, Shri Pankaj Sharma Shri Pankaj Sharma
has been appointed as Government of India nominee Director on the Board of
Punjab National Bank April 11, 2022.

32
 CHAPTER-4
DATA ANALYSIS

33
 Till now we have observed the Indian economic crisis, due to the
only one fraud banking system which happened India. From the above graph
we can see the fall of inflation in India with least one compared with other
countries means we can see the fall in the revenue of India that are due to
global problems. Here we can raise a question. How global economic crisis
effect in Indian economy?
◊ The second transmission of the global downturn to the Indian economy
has been through the steep decline in demand for India's exports in its ma-
jor markets. The first sector to be hit was the gems and jewellery which felt
the impact in November itself and where more than 300,000 workers have
lost their jobs.
◊ The adverse consequence of global turmoil was that the growth rate of
manufacturing in India fell to 3.2% in 2008-09 from 10.3 per cent in 2007-
08. Not only did domestic demand come down even export orders fell

34
Analysis and interpretation of financial statements are an attempt to de-
termine the significance and meaning of the financial statement data so that
a forecast may be made of the prospects for future earnings, ability to pay
interest, debt maturities, both current as well as long term, and profitability
of sound dividend policy. The main function of financial analysis is the pin-
pointing of the strength and weaknesses of a business undertaking by re-
grouping and analysis of figures contained in financial statements, by mak-
ing comparisons of various components and by examining their content. The
analysis and interpretation of financial statements represent the last of the
four major steps of accounting. A business owner can use several methods
to check the financial health of the business. Three of the most used meth-
ods are: Horizontal Analysis – analyses the trend of the company’s financials
over a period of time. Each line item shows the percentage change from the
previous period. Vertical Analysis – compares the relationship between a
single item on the Financial Statements to the total transactions within one
given period. It also shows the percentage of change since the last period.
You can perform a Vertical Analysis on both an Income Statement and a Bal-
ance Sheet. Ratio Analysis relationships between line items based on a com-
pany’s financial information. It also compares a company’s performance
from one period to another (current year vs. last year). Analysis of Financial
Statements determines the strength of a business and where there is room
for improvement. Without analysis, a business owner may make mistakes
understanding the firm’s financial condition. Resulting in poor rather than
strong decision making. For example, an Assets to Sales ratio is a measure of
a firm’s productive use of Assets. Whereas a low percentage rate compared
to the average for the industry usually indicates an efficient use of Assets.
Likewise, a high percentage rate indicates the need to improve the use of
Assets. Check out our blog post on Ratio Analysis. The following sections
give a detail explanation of Vertical and Horizontal analysis: Horizontal Com-
pany Financial Statement Analysis with a Horizontal Analysis, also, known as
a “trend analysis,” you can spot trends in your financial data over time. For
example, a $2 million profit year looks impressive following a $0.25 million

35
profit year, but not after a $10 million profit year. Horizontal analysis
stresses the trends in: Earnings Assets Liabilities 1. Financial Statements of-
ten contain current data and the data of a previous period. This way, the
reader of the financial statement can compare to see where there was
change, either up or down.
2. Horizontal Analysis takes this comparison goes one step further. It de-
picts the amount of change as a percentage to show the difference over
time as well as the dollar amount.
3. The following illustration depicts a Horizontal Analysis: 4. Note that the
line-items are a condensed Balance Sheet and that the amounts are shown
as dollar amounts and as percentages and the first year is established as a
baseline.
5. A baseline is established because a financial analysis covering a span of
many years may become cumbersome. It would require the arrangement
and calculation of interlinked numbers and dates. Particularly, interlinks
among the numbers make financial analysis tiresome and complex for a typ-
ical businessperson. A solution is to create Comparative Financial State-
ments, which depicts the results of Horizontal Analysis and show the trends
relative to only one base year. The baseline acts as a peg for the other fig-
ures while calculating percentages.

36
 6
REAL GDP GROWTH
5

0
2006-07 2007-08 2008-09 2009-10

Series 1 AGRICULTURE INDUSTRY

INTERPRETATION:

Real GDP growth showed a turnaround from 6.7 per cent in 2008-09
to 7.4 per cent in 2009- 10. In relation to the pre-global crisis high growth
phase of 8.9 per cent recorded during 2003-08, however, it suggests the
scope for further acceleration. A strong recovery in industrial sector com-
bined with a resilient services sector muted the impact of a deficient South-
West monsoon on overall output. The contribution of the industrial sector
to the overall growth increased sharply from 9.5 per cent in 2008-09 to 28
per cent in 2009-10 (Chart II.1a and b). II.1.4 The services sector witnessed
growth moderation from 9.3 per cent in 2008-09 to 8.3 per cent in 2009-10,
essentially due to the “Community, Social and Personal Services” on partial
withdrawal of fiscal stimulus and the base effect attributed to large dis-
bursements of arrears under the Sixth Pay Commission Award in 2008-09.
II.1.5 In the context of the build-up of generalised inflation in the second half
of the year, for meaningful assessment of the demand pressures in relation
to the capacity constraints at the macro level, potential output after the

37
global crisis emerged as a key variable for a decision on policy exit. Although
past experience in crisis affected countries suggests that many of them tend
to undergo a loss in potential output, since India avoided a financial crisis at
home, the risk of a potential output shock was remote.

38
 CHAPTER-5
FINDINGS, SUGGESTIONS,
CONCLUSION, BIBILOGRAPHY

39
5.1 FINDINGS:

* Debt-to-GDP ratio stands at an alarming 120 per cent. Not surprisingly, on

April 12, the government defaulted on all its outstanding foreign dues. The
country has to repay $4 billion in debt this year. Deep political and economic
mayhem has followed, as there is no money to pay for food and fuel im-
ports.
* Only 1000cr of amount was recovered from the Nirav Modi by The Punjab
national bank
* the interest rate of Punjab national bank was Rise from 5.0% to 9.0% to
cover the loss of the bank by one year.
* The government also failed to recover the amount of the nirav modi fraud
scam case.
* The prices and GST was rise up to 15% of cost amount in the year 2018 but
later on decreased due certain issues.
*The unemployment rate was increased by 50% to 25%
even though the graduates was drawn down into the business field but the
GST Rates and VAT Charges were not made them to get succeed in the busi-
ness.
* The black economy was increased by $1 billion the income tax department
was shown the report of loss in Indian rupees it’s about 300 lakh crores.
* The fixed deposits in the banks was fallen down by the public to 96 crores
to 163 crores it’s nearly 50% of fixed deposits was not yet taken place, so
the banks don’t have enough money to rotate and create the revenue in the
banks.

40
5.2 SUGGESTIONS:

* As the majority of people in India was a middle class people and below
poverty so they cannot afford to pay the taxes levied by the government
1. The government should follow the strict rules and regulations in income
tax leving charges
2. The people should be addicted to use the goods made in India, the loans
that was given by one bank should not affect the other banks and people.
3. The consumption system should be boosted by getting new rules in the
system with each and every point that should acceptable by everyone.
4. Private sectors like Industry should be created more and through that the
unemployment can be eliminated.
5. Government should be play most crucial role in boosting up investments
and to develop the shares which are in Indian Company.

41
5.3 CONCLUSION:

Over the years the Indian Banking Sector has passed through various phases.
The first phase is considered as the ‘infancy’ phase up to independence i.e.
1974. During this time period banking system developed on the privatized
basis. The total numbers of commercial banks have been 648 with total de-
posits of Rs. 1.80 crore, advances of Rs. 475 crore and Credit Deposit ratio of
43.99 percent on the eve of independence. For the development and the
growth of banking sector several important steps have been taken up such
as nationalization of Reserve Bank of India in 1948, enactment of Banking
Regulation Act in 1949, emergence of State Bank of India in 1955 and its
subsidiary banks during 1959- 60 etc. In 1967 Indian Government 338 initi-
ated the scheme of social control and 14 major Indian Scheduled Commer-
cial Banks have been nationalized. It have been reported that 73 scheduled
commercial banks having total deposits of Rs. 4661 crore, advances of Rs.
3599 crore and credit-deposit ratio of 77.5 percent on the eve of nationaliz-
ation. Nationalization of banks has been considered as one of the bold and
major steps in the process of banking sector reforms in India. As a result of
this Public Sector Banks control over 90 percent of banking business. Indian
banking structure emerged as strong and viable with rigorous control en-
forced by the RBI during this period.
Private Banks are having increasing trend for deposits as well as for the
growth of investment.
• Consolidation of players through mergers and acquisitions
• Development of new technology
• Globalization of operations
• Integrated Risk Management

42
5.4 BIBLIOGRAPHY:

1. Aboody D et al (no date) ‘Revaluations of fixed assets and future firm per-
formance: Evidence from the UK’, in Journal of accounting and economics.
Amsterdam: North Holland.
2. Anthony et al. (no date) ‘“Association between accounting performance
measures in stock prices: a test of the life cycle hypothesis”’, in Journal of
accounting and economics. Amsterdam: North Holland.
3. Arzac, Enrique R. (2005) Modeling mergers and buyouts with DealM-
odeler: user’s manual and deal modeler software. Hoboken, N.J.: John
Wiley.
4. Ball et al. (no date) ‘“Economic determinants of the relation between
earnings changes and stock returns”’, in Accounting review. Menasha, Win:
[publisher not identified].
5. Ball and Ray (no date) ‘“The earnings-price anomaly”’, in Journal of ac-
counting and economics. Amsterdam: North Holland.
6. Barker RG (1998) ‘The market for information - evidence from finance dir-
ectors, analysts and fund managers’, Accounting and business research. Lon-
don: Institute of Chartered Accountants in England & Wales, 29.
7. Barker RG (1999) ‘The role of dividents in valuation models used by ana
lysts and fund managers’, European accounting review. London: Routledge,
8. Barker, Richard (2001) Determining value: valuation models and financial
statements. Harlow: Pearson Education.
9. Bernard, Victor L. and Jacob K. Thomas (no date) ‘“Evidence that stock
prices do not fully reflect implications of current earnings for future earn-
ings”’, in Journal of accounting and economics. Amsterdam: North Holland.
10.Bradshaw MT (no date) ‘How do analysts use their earnings forecasts in
generating stock recommendations?’, in Accounting review. Menasha,

43
 CHAPTER-6
QUESTIONNAIRE, REFERENCE

44
QUESTIONNAIRE

I am BEEMAGANI SAIRAM HNO: 1151-19-405-031 Studying masters of com-

merce in University college of commerce and business management Os-
mania University Hyderabad I want to know your Opinion increasing taxes
and loans of higher amount effecting Indian economy. So I kindly request
you to fill the following questionnaire. All the data will be kept confidential.
Please read each question carefully and indicate your response by selecting
the most appropriate choice
1)Name:______________________________________
2)Age:_________________________________________
3) Gender:__________
4)Education:_________________________________

What is most important thing to be implemented in India to eradicate black

Economy?
a) Awareness in public
b) increasing legal policies and rules in income tax
c) Providing employment to all
d) All the above
2) Have you ever observed this type of fraud bank scam in recent years?
3) What was the biggest challenge all of us faced in during covid 19 eco-
nomic Crisis?
4) What was the main reason to made a demonization by PM Narendra
modi?

45
 5) What was your suggestions to government and if you where in the place
of PUNJAB NATIONAL BANK CEO what was the steps
REFERENCES
Bhalla, S. 2008. Surjit S. Bhalla: Inflation Control Chokes Growth. Business
Standard. 17 October.
Brunnermeir, M. K. 2009. Deciphering the Liquidity and Credit Crunch 2007–
2008. Journal of Economic Perspectives 23(1): 77–100.
Central Statistical Organization (CSO). 2009. National Account Statistics. New
Delhi: CSO
Economic Advisory Council. 2009. Economic Outlook for 2008-09. New Delhi.
Economic Advisory Council to Prime Minister.
http://www.pib.nic.in/archieve/others/2009/jan/eco_20092301.pdf (ac-
cessed 20 JUNE
———. 2008a. Global Financial Stability Report. Washington, DC: IMF.
———. 2008b. World Economic Outlook Update. Washington, DC: IMF.
———. 2009. World Economic Outlook Update. Washington, DC: IMF.
———. 2008. Report on Currency and Finance 2006–08. Mumbai: Reserve
Bank of India.
----------2009a. Reserve Bank of In (accessed 30 June 2009).
----------2009b. Handbook of Statistics on Indian Economy. Mumbai:
Reserve Bank of India. http://rbi.org.in/scripts/AnnualPublications.aspx?he
tistics%20on%20Indian%20Ec . 2009c. Balance of Payment.
http://rbi.org.in/scripts/SDD %20of%20Payment (accessed 30 June 2009).
———. 2009d. Macroeconomic and Monetary Development Third Quarter
Review 2008-09. New Delhi: Reserve Bank of India
———. 2009e. Macroeconomic and Monetary Developments First Quarter
Review 2009- Mumbai: Reserve.
----------2009f. Reserve Bank of India Annual Report 2008-09.Mumbai: Re-
serve Bank of India. Available:
http://rbidocs.rbi.org.in/rdocs/AnnualReport/PDFs/IRAR200809_Full.p (ac-
cessed 30 October 2009).

46
———. 2009. Trade Prospects for 2009. Washington, DC: The World Bank.
http://www.wto.org/english/news_e/pres09_e/pr554_e.htm (accessed: 20
May 2009).

47