Affected by the international soaring crude oil prices in 2007，India had a rise inflation rate，so the government promoted tight monetary policy. After the outbreak of the international financial crisis，foreign capital inflow in India and India’s exports plummeted. Under the double attacks by liquidity shortage and the reduced demand，Indian economic growth quickly decreased to 6.7% during 2008 to 2009. The massive expansion of economic policy taken by the Government in late 2008 took effect from the second quarter of 2009：strong industrial recovery with the entire annual growth rate of 9.3%，while the previous year only rose 3.9%；and the service industry continued to maintain higher growth rate with the annual increase of 8.5%. Affected by less than normal monsoon rainfall，only agricultural industry achieved 0.2% growth. Dragged down by that，Indian annual economic growth reached only 7.4%. 675953However，compared with other countries，India remains one of the world’s fastest growing economies.