ABSTRACT
The beginning of the twenty-first century actually found millions of working peoples lip into both greater debt and work-related insecurity. At this stage the Great Recession of 2007-8 emerged. The most instantaneous effect of the Great Recession in India was the withdrawal of funds by foreign institutional investors to cover losses made in other markets. In the globalized economy developing countries could not avoid the slowdown; China and India seem to have avoided a major slump in growth. Monetary policy became more complex and leaned towards quantitative easing whereby central banks bought bonds from the public by printing currency to ease money supply. The findings of the policy response go on to suggest policy areas that require further attention, work sharing, wage subsidies, social insurance, social assistance, training, social dialogue to avoid violation of labour rights, participation of labour in major policy decisions and market-information systems.
