The study will focus on the current financial crisis and its impact on the growth, trade and employment in software industries of India. The business pages are filled with titles that inevitably include "FINANCIAL CRI-SIS". What it means; why is it so important; is there an alternative; are some of the questions this journal will try to dwell on. Thesis will work on understanding the way the conventional financing works, and try topropose the Indian finance as a cushion for the current economic

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... crisis. In order to do this,the two major parts of the thesis are taken by the explanation of the conventional finance on one, and Indian finance on the other hand. In the part which elaborates the financial crisis, itwill be shown that only few of financial instruments are to be blamed for the crisis. Those are mortgages and some sorts of mortgage based securities. Therefore only those will employ our attention and comparable instruments existing in Indian finance will be elaborated. Theconclusion will elaborate on some issues and finally give an answer as to how can the crisisand Indian finance can come together. The emerging market economies are characterized as transitional, which means that they are in the processof moving from a closed to an open market economy. It is said that by adoption of neoliberalpolicies, the economy will suppose to lead to a better economic performance levels, as wellas transparency and efficiency in the capital market.