India, an emerging economy has witnessed unprecedented levels of economic expansion, along with countries like China, Russia, Mexico and Brazil. India, being a cost effective and labour intensive economy, has benefited immensely from outsourcing of work from developed countries, and a strong manufacturing and export oriented industrial framework (Malik, 1997). With the economic pace picking up, global commodity prices have staged a comeback from their lows and global trade has also seen healthy growth over the last two years. The global economy seems to be recovering after the recent economic shock. The Indian economy, however, was hit in the latter part of the global recession and the real economic growth witnessed a sharp fall, followed by lower exports, lower capital outflow and corporate restructuring (economic watch, 2010). The GDP growth was estimated to be just 5.4% in 2009 when compared to 7.3% in 2008 (economic watch, 2010). It is expected that the global economies will continue to sustain in the short-term, as the effect of stimulus programs is yet to bear fruit and tax cuts are working their way through the system in 2010. Due to the strong position of liquidity in the market, large corporations now have access to capital in the corporate credit markets (economic watch, 2010). In order to sustain economic growth during the time of the worst recession, the government authorities in India have announced stimulus packages in order to prop up economic growth and to finance these stimulus packages, the Indian government has raised over $100 billion over the last four quarters.