What saves India from a crisis?6 min read . Updated: 12 Nov 2013, 07:40 PM IST
India has adopted economic policies that prevent the emergence of a crisis. But it cannot rest on these forever
The US is yet to completely come out of the financial crisis that began in 2007-08. Parts of the European Union (EU) are still going through a financial crisis. East Asia faced a major crisis in 1997-98. What about India? There was a crisis in the early 1990s but that was a long time ago and rather mild compared with crises elsewhere. The recent slowdown in growth and turmoil in the currency market in India in September this year are disturbing but they are far from being labelled a financial crisis. India has somewhat consistently performed much better with regard to macro-financial stability relative to the rest of the world. However, this stability has come at a high cost.