The financial crisis of 2010 engulfed the global economy. It was also called as global financial meltdown. The downturn that begun in US in form of recession led to some negative impact on Indian Economy. The most immediate effect of this global financial crisis on India is an out flow of Foreign Institutional Investment (FII) from equity market. Due to this the banking and non-banking financial institution were severely affected and suffered losses. The recession caused financial crisis in USA and due to which the exports of Indian IT services and software were adversely effected. This global meltdown effected it sector and the GDP growth rate. This paper analyses the seriousness of impeding adverse situation of developing countries and discuss weather as a consequence of this, a global recession is inevitable. In this time of crisis government of India responded through its monetary policy instead of implicating fiscal policies. This paper is an attempt to analyse the impact of the global recession impact om Indian economy.