The financial crisis that started in the U.S. mortgage markets in 2007 which had ripple effects on the world economy resulting in deep and lengthy recession. Financial crisis has a widespread impact on the economy thus the importance of understanding of the crisis becomes crucial. Numerous debates have been lingering around the topic of global financial crisis and countries have persistently been identifying the innovative practices to overcome these turmoil's. The research aims to survey the varied literature on financial crisis firstly what are the inherent factors that lead to financial crisis, secondly what are the financial implications of these crisis on the emerging economies with specific reference to India.The paper will also assess the magnitude of impact of these global financial crises on Indian economy from a micro and macro-economic perspective at an interval prior crisis and post crisis.
The paper will comprise of three Sections, Section I will analyze the factors responsible for global financial crisis, Section II will focus on the impact of global crisis on Indian economy and Section III will study the best practices adopted to sustain and overcome such episodes. The paper tries to establish the fact that there exists integration between GDP, exports, capital inflows, consumption and global financial crisis. The global crisis linked with recessions and succeeded by financial meltdowns has triggered the government for implementing innovative strategies in sustaining such debacle.