Title: Extent of the impact of monetary and fiscal policies in addressing
macroeconomic indicators (GDP and inflation) in economies like India that
are vulnerable to external geopolitical shocks
Authors:
Samara Shree Desai
Journal:
International Journal of Social Science and Economic Research (IJSSER)
ISSN: 2455-8834
Volume:
11
Issue:
9
Publication Date:
September 2026
DOI:10.46609/IJSSER.2026.v11i09.041
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Samara Shree Desai
Independent Researcher
MLA 8 Desai, Samara Shree. "Extent of the impact of monetary and fiscal policies in addressing macroeconomic indicators (GDP and inflation) in economies like India that are vulnerable to external geopolitical shocks." Int. j. of Social Science and Economic Research, vol. 11, no. 9, Sept. 2026, pp. 5139-5152, doi.org/10.46609/IJSSER.2026.v11i09.041. Accessed Sept. 2026.
APA 6 Desai, S. (2026, September). Extent of the impact of monetary and fiscal policies in addressing macroeconomic indicators (GDP and inflation) in economies like India that are vulnerable to external geopolitical shocks. Int. j. of Social Science and Economic Research, 11(9), 5139-5152. Retrieved from https://doi.org/10.46609/IJSSER.2026.v11i09.041
Chicago Desai, Samara Shree. "Extent of the impact of monetary and fiscal policies in addressing macroeconomic indicators (GDP and inflation) in economies like India that are vulnerable to external geopolitical shocks." Int. j. of Social Science and Economic Research 11, no. 9 (September 2026), 5139-5152. Accessed September, 2026. https://doi.org/10.46609/IJSSER.2026.v11i09.041.
References
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[13] . Ltd, P. C. (2026, June 17). The Great Capital Exodus: How India is fighting to win back foreign capital. Under The Market Lens. https://underthemarketlens.substack.com/p/india-foreign-capital-inflows-rbi-fpi-measures-2026
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[15] . What is an FCNR Account? (2026, August 14). What is an FCNR Account? https://www.hdfc.bank.in/blogs/fixed-deposit/know-fcnr-meaning-and-its-features
[16] . Bank, K. M. (2026, June 19). RBI FCNR(B) swap Window 2026: Guide for NRIS. Kotak Mahindra Bank. https://www.kotak.bank.in/en/stories-in-focus/nri/fcnr-b-swap-window-2026.html
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ABSTRACT:
This research paper investigates the extent to which monetary and fiscal policy measures can
reduce the impact of external geopolitical shocks on economic growth and inflation in
vulnerable emerging economies, in countries like India. The US tariff imposition along with the
geopolitical crisis in West Asia during 2025-2026 is used as a real-life situation facing emerging
economies. The geopolitical crisis has resulted in almost 10% depreciation of the rupee, a $16.4
billion net capital outflow, and maximum repatriation of FDI investment that has never been
witnessed in India. Through the use of quarterly data from 2016 to 2026, this research paper
investigates the mechanism of shock transmission via oil prices, capital flows, and exchange
rates. It also discusses the new FCNR(B) 2026 as a measure to attract dollar deposits in the
country. Overall, it compares the impact of monetary policy and fiscal policies in offsetting the
shocks.
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