Vol. 2, Issue 11, Part C (2016)

Abstract
The world is presently facing economic crisis due to which economics world over are considered to be entering into prolonged slowdown in economic activities. The intensity of present economic crisis is so high that is being compared with the global economic recession in 1873, great depression of 1930s and East Asian crisis of 1990s. The current economic slowdown is considered to be subprime mortgage crisis in the financial sector of United States. Global economics recession and its impact on Indian economy, in this paper we tries to explain the impact of three distinct channels, that is the capital flows, sectoral growth and financial sector.