Global Economic Crisis and Indian Economy

Bhanumurthy, N. R.; Kumawat, Lokendra

doi:10.1177/097492920900100202

Cited by 5 publications

(3 citation statements)

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“…Dua and Kapur ( 2018 ) study the resilience of Indian banking towards compliance with BASEL norms using an empirical macro-finance model and subsequently undertake macro stress testing using a four-step process and finds that Indian banks are resilient to macro shocks in terms of BASEL II and BASEL III requirements. Structural macro-econometric models were also constructed to examine the impact of various shocks and how they get reflected in the final variable through different sectors (Bhanumurthy & Kumawat, 2009 ). Singh ( 2005 ) estimates a small macro-model for the Indian economy based on policy simulation and forecasting exercises.…”

Section: Review Of Literaturementioning

confidence: 99%

How Serious is India’s Nonperforming Assets Crisis? A Structural Satellite Version of the Financial-Macroeconometric Model

Nithin

Mishra

Pandikasala

2023

Asia-Pac Financ Markets

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This paper develops a Structural Satellite version of the Financial-Macroeconometric Model of India (SSFMMI) to examine whether the surge in Nonperforming Assets (NPAs) in Indian Public Sector Banks (PSUs) post-2015 is due to macroeconomic shocks or better classification of loans and cleaning of bank balance sheets. Specifically, the paper analyses the impact of a rainfall shock, domestic food price shock, world oil price shock, fiscal shock, and monetary shock using counterfactual policy simulations and an out-of-sample forecasting framework to validate the impact of these macroeconomic shocks on NPA levels. The paper's outcomes suggest that the late surges in NPAs are not due to macroeconomic shocks and, therefore, that Indian banks are resilient to such shocks. However, the study reveals that the rise in domestic fuel prices and world food prices can cause a surge in NPAs levels.

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Section: Review Of Literaturementioning

confidence: 99%

How Serious is India’s Nonperforming Assets Crisis? A Structural Satellite Version of the Financial-Macroeconometric Model

Nithin

Mishra

Pandikasala

2023

Asia-Pac Financ Markets

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“…The nations with the best infrastructure and the one with middling infrastructure sailed in the same boat. Amid the crisis, economic growth and activities of an economy do retard (Bhanumurthy and Kumawat, 2009). Human lives and economic crisis turned out to be one of the expensive outgrowths of pandemic COVID-19.…”

Section: Introductionmentioning

confidence: 99%

Impact of COVID-19 on food outlets: symmetric or asymmetric? A case study of Amritsar

Dhillon

Kaur

2021

JHTI

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PurposeThe present study is an intra-industry analysis, which aims to investigate whether the impact of COVID-19 on employment level, clientele rate, liquidity constraints and sustainability aspect of different food outlets is symmetric or asymmetric in nature.Design/methodology/approachWith the help of well-structured questionnaire, the study has surveyed 80 food outlets in total by interviewing the managers and owners of these outlets. Food outlets have been classified into four categories namely international, national, local and street food outlets. Econometric techniques like MANOVA and Garret ranking have been employed to fulfil the objective of the study.FindingsThe results depict that the impact of COVID-19 on employment level and liquidity constraints is significantly asymmetric amongst different groups of food outlets, even though the decline in extent of clientele is somewhat same for all groups. The survival aspect of outlets also witnesses clear-cut asymmetry in results as big outlets have greater potential to survive for longer if lockdown happens again when compared to street food outlets as their financial availability and stability differ.Research limitations/implicationsThe sample size of study is restricted, mainly due to lesser number of national franchise's food outlets available in Amritsar, though other categories of eateries were sufficient in number. Further, the study is restricted only to one district of Punjab state, whereas for future research, inter-district comparison can be done.Practical implicationsThe findings reveal that the street food outlets may gain by fostering its online functioning. Similarly national food outlets are encouraged to alter their business strategies to revive their sales against their competitors.Originality/valueThis study is one of the explorer studies to analyse the impact of COVID-19 by making an intra-industry comparison for the eatery industry – considering four different categories of eateries. The classification of eateries helps in analysing whether the employment level, clientele rate, liquidity constraints and survival perspective have been affected symmetrically for the whole eateries industry or does severity of being affected differ asymmetrically. The study makes a contribution by adding a new string of dimension to the existing load of literature in the domain of hospitality.

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“…SeeBhanumurthy and Kumawat (2009). at PENNSYLVANIA STATE UNIV on May 28, 2015 chr.sagepub.com Downloaded from…”

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confidence: 97%

Impact of Global Economic Crisis on the Indian Economy

Bhanumurthy

2009

China Report

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The sub-prime crisis that started in 2007 and limited to the US economy has created systemic problem throughout the global fi nancial system following the collapse of a big investment bank. The real economic impact of this fi nancial turmoil is expected to be very large. It has been offi cially stated that developed economies such as the US and the European Union are entering a recessionary phase. Even the world economic growth has been predicted to decline. The impact of this fi nancial crisis on India is also going to be signifi cant, as India is not decoupled with the global macroeconomic behaviour. The service sector, of which two sectors namely 'trade, hotels group' and the 'fi nancing, insurance group', growth is strongly linked with the global economy. Hence, any decline in the global economic activity is expected to have adverse impact on the domestic services growth. On infl ation front, this crisis indeed brought down the infl ationary expectations as it led to decline in the world oil prices to around US$ 70 per barrel after reaching a peak of US$ 142 in July. This would have positive impact on the domestic economy through reduction in overall interest rate structure, which could stimulate domestic demand. On the external sector front, we might see a fall in the foreign exchange reserves due to outfl ow of short-term capital in the short term. Together with this, predicted fall in exports would result in weak rupee. But, given the strong domestic fundamentals, we do expect that this adverse impact is limited only to the short term and there would be resilience in the economy in the medium term once the demand and investments pick-up. On the reforms side, the signifi cant adverse impact would be the possible shelving of much-awaited fi nancial sector reforms that is expected to enhance fi nancial inclusion.

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Global Economic Crisis and Indian Economy

Cited by 5 publications

References 0 publications

How Serious is India’s Nonperforming Assets Crisis? A Structural Satellite Version of the Financial-Macroeconometric Model

How Serious is India’s Nonperforming Assets Crisis? A Structural Satellite Version of the Financial-Macroeconometric Model

Impact of COVID-19 on food outlets: symmetric or asymmetric? A case study of Amritsar

Impact of Global Economic Crisis on the Indian Economy

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