Impact of Global Recession on Indian Exports: Performance and Policy Implications

When the recent crisis gripped the world 2008, most policymakers, economists and experts put forth the view that India would be only marginally affected. But the contagion of the crisis has spread to India through three major channels – the financial channel, the real channel, and importantly, as happens in all financial crises, the confidence channel. The decline in the exports as a result of declining demand in the world market was the major factor which affected Indian economy not only in the export intensive sectors but other sectors too. It is worthwhile to examine the changes in volume and composition of the export during recession period. The present paper made an effort in this direction. The paper aims to understand the various aspects of the impact of the recession with particular reference to the exports of India