Social costs of the global economic crisis

.....ndia's export growth which had lost momentum in the second half of 2011- 12, mainly owing to slow- down in external demand has shown further deterioration in 2012- 13. Exports in April- September 2012- 13 declined by 6.8% as compared to the level during the corresponding period of 2011- 12. There was considerable decline in exports to the Euro area. A more demonstrable case of external sector affecting India's growth is the risks from the impending US " Fiscal Cliff". As the RBI puts it. " A major downside risk to global growth is now looming from the US fiscal cliff. The US Congressional Budget office forecasts that the US fiscal deficit will decline by 3.3 percentage points to 4% of GDP in 2013. Such as sharp fiscal consolidation may have a deleterious impact on global growth. There could be an adverse impact of the US fiscal cliff on India's growth. If global growth slumps there would be spilled over impact on the current account as well……." It now seems difficult for India to attain even a 5% GDP growth in 2012- 13. Thus the full impact of the global financial and economic crisis on the Indian economy is now manifesting itself........

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