18 Years On: How 2008 Financial Crisis Reshaped India's Banking and Regulation

The 2008 global financial crisis impacted India through disrupted capital flows, trade, and financial markets, though its banking system largely held firm. The crisis revealed significant gaps in India's financial regulation and resolution frameworks. In response, India introduced key reforms including the Insolvency and Bankruptcy Code (IBC) and stronger safeguards for systemically important banks. Nearly 18 years later, India's financial system is considered more resilient than it was in 2008. However, the rapid rise of AI-driven investment is now raising new concerns about leverage and potential threats to financial stability.