India’s high growth story was cut-short, perhaps prematurely, beginning with the global financial crisis of 2008–09 (real GDP growth dropped to 6.7 per cent). The focus of macroeconomic policy then was to arrest the contagion of the global crisis. In 2009–10, the focus of macroeconomic policy shifted from containing the contagion to management of recovery.
The economy rebounded strongly in 2009–10 (8.6 per cent) and 2010–11 (9.3 per cent). Coordinated fiscal and monetary policies played a significant role in the recovery of the economy and in the maintenance of financial market stability.