Lessons from India The fact that India has not gone through any financial crisis as a result of financial deregulation is not only remarkable, but a testimony to the correctness of the judgment that reforms to global standards need to be adjusted to local conditions (Mohan, 2007).
The need of the hour is to have financial sector reforms in a recalibrated manner to address the issues in light of the crisis. India has so far remained relatively insulated from the crisis that global banking system has experienced in the course of the 1990s. Our exposure to troubled subprime assets and related derivatives is negligible in comparison to many other economies.