Challenges facing Indian economy India has benefited from greater integration with the world economy and global financial markets. There was a belief in some quarters that India in particular and the EDEs in Asia have “decoupled” from the AEs and could grow indefinitely. The experience gained during the GFC, however, proved that the decoupling theory was only a myth.
It is also been realized that no doubt there are numerous benefits of globalisation it also entails huge costs. As has been seen over the years India’s globalization indicators have been going up; for example, the current and capital account receipts and payments as a percentage of GDP has been around 110 per cent in the last two years.