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"The global financial crisis impacted India significantly, notwithstanding the sound banking system, negligible exposure of banks to sub-prime assets and relatively well-functioning financial markets," RBI Deputy Governor Anand Sinha said at the Finance Summit organised by IIM, Kashipur.
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Sinha said the impact was mainly on account of the country's growing trade and financial integration with the global economy.
"The immediate impact of the crisis was felt through large capital outflows and consequent fall in the domestic stock markets on account of sell-off by foreign institutional investors (FIIs) and steep depreciation of the rupee against US dollar," he added.
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On sovereign debt crisis on India, Sihna further said that with the euro area appearing to head for a recession and the global growth slowing again after a short recovery, growth in India too has moderated more than was expected earlier.
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"Increase in global uncertainty, weak industrial growth, slow down in investment activity a