Indian Economy and Global Financial Crises: Vulnerability, Resilience, and the Dynamics of an Emerging Market

Author(s)	Mr. Chris Thomas Biju, Dr. Archana PV PV
Country	India
Abstract	This study examines the impact of the 2008 Global Financial Crisis (GFC) on the Indian economy and stock markets. The research analyses India’s macroeconomic conditions before the crisis, the transmission channels through which global shocks affected the economy, and the role of financial market integration. The study focuses on the behaviour of the BSE Sensex and NSE Nifty during the crisis period and evaluates the policy responses of the Reserve Bank of India (RBI). Using empirical literature and financial data from 1999–2008, the paper highlights how foreign institutional investment flows, trade linkages, and investor sentiment influenced market volatility and economic stability. The findings indicate that although India avoided a severe banking collapse due to strong regulatory frameworks and domestic demand, the economy experienced significant market decline, capital outflows, and currency depreciation. The study concludes with policy implications for emerging economies facing financial globalisation and external economic shocks.
Keywords	Global Financial Crisis, Indian Economy, BSE Sensex, NSE Nifty, RBI, Financial Contagion, Emerging Markets, Market Integration, Stock Market Volatility, Capital Flows
Field	Mathematics > Economy / Commerce
Published In	Volume 8, Issue 3, May-June 2026
Published On	2026-06-06
DOI	https://doi.org/10.36948/ijfmr.2026.v08i03.80452

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