Innovative Journal of Business and Management

The objective of the paper is to investigates the impact of global financial crisis on exports from India to the country of origin of Great Recession of 2007-2009 i.e., United States employing Gravity Model for the period 1985 to 2010.The paper also analysis the trade relationship between the two countries during the crises period through the dummy variable approach. Data has been collected from Bloomberg, NIC, CEPII, FRED, St. Louis fed’s database and World Bank. The results obtained from OLS regression procedure reveals the influence of deteriorating economic and financial conditions in United States on the export demand from India during crisis period. Further, while the stage of economic development of both countries concomitant with population of US only was found to have an encouraging role towards India’s exports to US, the population of India was unearthed to have a regressive disposition in the equation. The distance between the two countries has been found to play a regressive role in the trade relationship of two countries. Crises window 2007-09 is showing a negative impact but insignificant impact it turns out to be significant at 13%.

The growth of Indian economy and markets has given birth to a new range of customers who is inclined towards the purchase of braded and quality products specially the apparels as the youth of the country is now exposed to various business and professional situations. The economy has resulted in to the development of markets with new jobs created in the ITES sector, Biomedical, Automotive engineering, Apparel manufacturing and Civil engineering. The growth is strongly supported by the education sector with increase in the number of students enrolling for higher education and large numbers of students graduating every year thus creating a large pool of technical and managerial manpower. The working class people segment has grown since the economic growth and it has benefited middle class and upper middle class people. Due to the increase in the number of working people and substantial raise in income, spending power has increased over the years, and particularly the young Indians in the age of 15 – 25 like to shop more. The Government of India has laid down strict rules to protect the environment and avoiding child labor but there is no legality followed by companies in providing an ethical environment in means of working time and salary. This study focuses on the consumer behavior of young Indians in the age of 15 – 25 to understand and know their perception towards spending and to show a new path for the society and the industry for a sustainable economic and social environment.