Reserve Bank of India (RBI) Governor D Subbarao on Monday said fiscal stimulus packages by the government and the central bank’s monetary policies helped the country recover faster from the global financial crisis.
The financial crisis of 2008 was different from other past economic crises, he said while addressing the students of Gitam School of International Business here.
During the past crises, only one or two countries were affected but in 2008, the whole world was affected and India was no exception, he added.
“During the crisis, India’s GDP growth slowed, rupee depreciated by 30 per cent in 15 months, exports slipped 25 per cent, FIIs had taken money out of Indian markets, corporate houses faced liquidity crunch and the entire financial markets had come under pressure. These were the ill-effects of the crisis,” he said.
“The current crisis is not the end. In future also, we can see such crises but we should reduce their impact by proper policies,” he told the students.
