The crisis which emerge in early 2008, gradually spread all over the world. The crisis made matters much worse by causing sharp declines in exports of manufactures and reversal of capital flows such that both current and capital accounts of the balance of payments have worsened. The macro issues have been much commented upon, but the specific impact upon certain groups has been much less widely noted. Major affected areas by crisis are employment and poverty reduction, i.e., social sector. Many people, all over the country, lost their job and go back in to the poverty trap due to the recent economic crisis. But, more interesting point here is that effect of financial crisis on Indian economy is not becoming a long time and after June, 2009 Indian economy gradually moves out of the effect of financial crisis and in 2010, nearly all sector of the economy come out of the trap of the economic crisis. It may be noted that the main story behind this is the less globalised nature of the Indian economy and Gandhian path of development. At world wide level in the reference of the present crisis, it is assumed that Gandhian path of development is the best mechanism to save the world and vulnerable section of the society from another crisis.
Emerging Economies, Global Economic Crisis, Gandhian Path, Poverty, Transmission Mechanism
