This increased propensity to save may blunt the impact one might otherwise expect from fiscal and monetary policy stimulus. Finally, external surplus-running emerging markets, especially in Asia, will have strategic consumption and investment choices to make. Their broad development strategy in the early to mid-2000s was to grow national income by exporting cheap consumer goods to developed, largely deficit-running, economies.
NBFCs like the Asset Finance Companies (AFC) operating in the SME and Transport financing segments and Micro Finance Institutions (MFI) are very active as originators. Though the market had begun since the year 2000, the GFC obviously has its repercussions in Indian market as well.