Secondly, in a neoliberal economy the role of the external market increases greatly compared to the home market, as the latter is kept deliberately restricted, as a consequence of keeping down wages for the sake of improving international competitiveness. This provides the means by which the world economic crisis impacts on the level of activity in the Indian economy. The growth of exports has indeed slowed down which in turn has had multiplier effects on the economy as a whole, including on the industrial sector.

Economy Sliding into Stagnation | Peoples Democracy