The Indian Economy which began with a bang clocking over nine per cent in 2008 ended in none too comfortable position in the face of global recession resulting in slowdown of the domestic economy. But what is heartening is that India is not in the same bracket as other emerging economies because ours is a largely domestic market
driven economy and that exports did not account for sizeable percentage of India’s Gross Domestic Product.
In early part of 2008 the stock market was surging with BSE Sensex, a barometer of the economy racing toward 21,000- mark. The exports were surging growing at 20-30 per cent, which
made Government fix an annual target of 200 billion dollars for 2008-09 for erchandise exports. Services exports raced towards an additional 100 billion dollars. Realty prices were booming and prices were increasing on an average of 20 per cent. Foreign exchange reserves swelled week after weeks and it crossed 300 billion dollars. The Rupee was getting appreciated and at one point of time there were fears that Rupee-Dollar value may become 35 to a dollar.