The Reserve Bank of India (RBI) warns against the slowdown of economy following global pressure. It also clarified that there is not always guarantee of continuity of growth for the emerging economies of the world. The global circumstances can affect the shining growth story of country and it is not immune to global pressures. It also expressed uncertainty over the capital flows form the foreign investors.

The central bank forecasted that there can be stagnation in the service sector following global slowdown. Indian BPO and call centre industry is mainly dependent on the global market conditions. The cost reduction measures by companies can also lead to increase outsourcing to India. But cost reduction can affect the BPO and IT-enabled services. The financial services are most prone to be affected due to global slowdown. If financial services companies reduce their geographical operations, outsourcing from India can be decreased according to the report of RBI.

The central bank is also facing the challenges like inflation and slowdown in growth. Further tightening of monarchy policy can complicate the global developments and domestic demand pressures. The gross domestic product growth already dipped to 7.9 per cent from 8.8 in the previous year.