Global Financial and Economic Crisis: Implications for Trade and Industrial Restructuring in South Asia

This study investigates the impact of global crisis shocks on India's trade and industry. The authors use panel data modeling and vector autoregression techniques to understand the dynamic effects of global crisis shocks on Indian industry and trade. Changes in trade composition are positively associated with changes in manufacturing composition in India, controlling for other variables. However, there is no strong indication that Indian industry has been severely harmed by the fall in demand in crisis-affected advanced economies such as the United States, the European Union, and Japan, holding other things constant.