Both the Government and the Reserve Bank responded to the challenge of minimising the impact of the crisis on India in a coordinated and consultative manner. The Reserve Bank’s policy response was aimed at containing the contagion from the global financial crisis while maintaining comfortable domestic and forex liquidity.
The Government launched three fiscal stimulus packages which came on top of an already announced expanded safety-net programme for the rural poor, the farm loan waiver package and payout following the Sixth Pay Commission report. The combined impact of these fiscal measures is about 3 percent of GDP.