The brooding worries over the unsettled European economy have led a steep fall in the Indian federal bonds. Besides, it also added woes to the US Treasury yields. To discuss the slower economy of the world, a meeting was held by the G7 but no solution could be procured from the meeting.

The Indian industrial output was worse hit by the global crisis. Amid growing menace of global crisis, Asian banks have stood steady with their borrowing rates. But, it is believed that RBI would be raising the borrowing rate on the coming Friday. Since inflation struck the country, RBI has raised the borrowing rate 11 times with the hope of combating inflation.

However, this time the situation has become a little riskier for RBI has the inflations has increased to 9.9%. Although RBI has been taking measure in combating inflation, its measures are proving least helpful.

Following the global crisis, the Indian rupee fell to 46.99 against dollar, today in the morning at 11:25 on BSE. The market analysts are of the view that the inflation in India is political matter as one third of its population survives upon less than $2 every day.