Indian economy was insulated: Usha Thorat

“In India, the impact of the financial crisis though significant, has not been to the same extent as in other parts... mainly due to the dominance of domestic expenditure-consumption and investment and high savings rate,” RBI Deputy Governor Usha Thorat recently said.

India’s saving rate stands at over 37 per cent while investment rate at 39 per cent. Among other things that helped alleviate the adverse impact was the capping of the capital account. However, the domestic credit equity and forex markets bore the brunt of the crisis slowing down in the growth rate and employment generation.Still, the country is the second-fastest growing economy in the world .