In any case, the crisis clearly signalled the existence of certain significant gaps in the standards. The first was the quantity and quality of capital requirements, which proved to be insufficient.
True, the benign global environment, easy liquidity and low interest rates helped, but at the heart of India's growth were a growing entrepreneurial spirit, rise in productivity and increasing savings. These fundamental strengths continue to be in place. Nevertheless, the global crisis will dent India's growth trajectory as investments and exports slow. Clearly, there is a period of painful adjustment ahead of us.