‘When the Troubles Ripple Across’: China and India’s Recent Experiences with Contagious Financial Crises

Abstract

China and India are the two major emerging giants of the world. Commonalities and differences between these two countries persist. China and India have embraced financial globalization. Embracing financial globalization is always costly, full of several risks and challenges because crises of the recent past — one global 2008 witnessed in the USA and another Sovereign Debt unleashed in Euro zone in the spring of 2010 — are accompanied by widespread spillover and contagion effects across the two countries and make them vulnerable to crises. It is in this backdrop that the present paper analyses the impact of these two Great crises on the Chinese and Indian economies. How did these two economies respond to the crises is also portrayed.