Vol. 2, Issue 4, Part H (2016)

Abstract
This paper attempts to examine the effectiveness of monetary and fiscal measures taken by Indian Government to counter the effects of global economic slowdown on Indian economy. Looking at global economic slowdown to augment domestic liquidity and to ensure that credit continues to flow the productive sector of economy Reserve Bank had reduced CRR from 9.0 percent to 5.0 percent, SLR 25.0 percent to 24.0 percent, Repo Rate 9.0 percent to 4.75 percent and Reverse Repo Rate 5.0 percent to 3.25 percent from July 2008 to July 2009. Fiscal policy of 2008-09 cuts the excise duty, customs duty and service tax to increase the demand of industrial goods.