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Stream/Area:
-
Subject:
-
Paper ID:
IJSREM66965
Volume:
10 |
8 |
Aug 2026
Pages:
1--
Publication Frequency:
Monthly (12 issues per year)
License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.
Master of Business Administration
Malla Reddy Engineering College and Management Sciences
Master of Business Administration
Malla Reddy Engineering College and Management Sciences
A global recession is a decline in economic activity that can reduce investment, employment, trade, consumer demand, and financial-market stability. Because India is increasingly integrated with international markets, global downturns influence banks, capital markets, NBFCs, insurance companies, mutual funds, foreign investment, exchange rates, liquidity, and investor confidence. This study examines the impact of global recession on the Indian financial sector and evaluates institutional and policy responses. Primary and secondary data are used, with responses from 100 respondents analysed through percentage analysis. The study finds significant financial pressures but also highlights resilience supported by regulation, technology, risk management, and timely policy intervention.
KEYWORDS
Global recession creates substantial challenges for the Indian financial sector because of India's increasing integration with international financial and economic systems. The study demonstrates that global economic downturns can reduce investment activity, weaken investor confidence, increase financial-market volatility, affect banking operations, reduce foreign investment, create exchange-rate pressures, and place additional stress on NBFCs, insurance companies, mutual funds, and other financial institutions. At the same time, the Indian financial sector has demonstrated considerable resilience through effective regulation, monetary and fiscal measures, technological advancement, institutional strengthening, and improved financial-risk management. RBI intervention and government support can help reduce the adverse consequences of external economic shocks. Digital financial services also provide greater operational continuity during periods of uncertainty. Therefore, continuous strengthening of financial regulation, risk-management systems, digital infrastructure, institutional governance, and financial literacy is essential for maintaining long-term financial stability and sustainable economic growth in India.
International Monetary Fund. (2023). Global financial stability report: Financial and climate policies for a high-interest-rate era. International Monetary Fund.International Monetary Fund. (2024). World economic outlook: Policy pivot, rising threats. International Monetary Fund.Reserve Bank of India. (2024). Annual report 2023–24. Reserve Bank of India.Reserve Bank of India. (2024). Financial stability report. Reserve Bank of India.Securities and Exchange Board of India. (2024). Annual report 2023–24. Securities and Exchange Board of India.World Bank. (2024). Global economic prospects. World Bank.World Bank. (2023). Global economic prospects. World Bank.Ministry of Finance, Government of India. (2024). Economic survey 2023–24. Government of India.Mishkin, F. S. (2022). The economics of money, banking, and financial markets (13th ed.). Pearson.Madura, J. (2021). Financial markets and institutions (13th ed.). Cengage Learning.
Publication Date
8/26/2026
Peer Review Type
Double-Blind Peer Review
Review Rounds: 2
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The authors declare no conflict of interest related to this research work.
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