Financial emergency has never been declared in India so far. If the President is satisfied that there is an economic situation, in which the financial stability or credit of India is threatened, he or she can declare Financial Emergency.

Such an emergency must be approved by the Parliament within, 2 months. Such a situation had arisen, but was avoided by putting the gold assets of India as collateral for foreign credit (in 1991). Under Article 360, the President is vested with the power to proclaim Financial Emergency.