GLOBAL FINANCIAL CRISIS & INDIA -PROBLEMS AND RECOMMENDATIONS

India an emerging market economy thought it be different this time and they be able to escape the scar, also
got affected though to a lesser extent. But the lesson to be learnt is we are living in a global villages, and
our sustainable growth as well as our challenges is linked, though to a larger or smaller extent depending
upon internal as well as external macros. This is mainly due to the inter linkages between various
economies that any such crisis takes global shape and can only be redressed by managing together .
Collective efforts of larger number of regulators and governments worldwide are needed for the rescue
during the times of crisis.
This leads us to the conclusion that globalization and hence the financial market liberalization has
converted the job of regulators to proactively manage macroeconomic policies rather than to controlling
or regulating markets. The role of regulator is to keep a close watch on internal as well as external
macro-economic developments and manage proactively its foreign trade policies, foreign exchange
reserves and fluctuations in currency values , fiscal policies , monetary policies etc. to take the economy
on the desired level of economic growth which is sustainable in long run and manage the short term
hiccups arising in the way of doing so.