Global economic crisis, which started as a sub-prime crisis in the US economy, has ended up putting most of the global economies in its turbulent fold. Due to the feel good factor prevailing for a considerable period of time in the housing market, financial institutions mindlessly gave unchecked credit to even the bad credit holders. Such loan takers defaulted massively thus putting the entire credit system in danger. Under the well connected system of global economic system such financial mishaps in a particular, especially as big a market player as the USA economy, ended up starting a chain reaction. As the stakes are interrelated in the present system of economics and trade, the repercussions reach far and wide. Stock markets crashed. Credit became harder and harder to avail, forcing the companies to go for cost-cutting and down-sizing. In India too banking institutions are becoming more and more hesitant in giving personal and business loans. The rate of interest is riding high. Even though the RBI has tried really hard to provide liquidity by cutting the CRR and Repo rates, still the effects are yet to reach the consumers. However, on a positive note Indians can take a few positive points from the current scenario. Because the Indian financial system has been really efficient in handling the situation. The crisis in India has been managed to a good extent. Due to the prudent economic measures taken by the Union Finance Ministry, we can hope that we will certainly come out of the economic doldrums. Without browbeating too much about the present crisis, we need to take some sound decisions and lesions from the episode. One thing is clear, we can not avoid the path of globalism in order to develop as a nation. But what we can do is that the Government can regularise the financial system within a broad playing field where the market players can engage in a healthy competition using the well-established norms and principles. Apart from all these issues, it is quite a very interesting fact the Government has offered a helping hand by introducing various measures. It is actually a good news that this global financial turmoil has not fully taken India into its grip. As a matter of fact, India managed to bounce back and that too quite impressively. Moreover, fingers are kept crossed and it is expected that good times would soon be back.