FOCUS: Journal of International Business Volume 6, Issue 2, July-December 2019, pp. 43-67 doi: 10.17492/focus.v6i2.187354 Analysis of Euro Zone Crisis on BRIC Nations through Index Approach Anjala Kalsie*, Jaya Pandey** and Ashima Arora*** ABSTRACT All financial crises share certain features, but each expresses its own exclusive story and has its own distinctive teachings for the coming future. The paper aims to measure the impact of Euro zone crisis on each of the 4 BRIC (Brazil, Russia India and China) nations during 2008-2009, through composite indices approach. The paper divides the regressand into two different parts. In the first part, the impact in terms of Macro and Banking Index and in second part, the impact in terms of Financial and Forex Index was analysed. The results of PCSE and FGLS models indicate that financial factors, fiscal forex, productivity and social indicators are responsible for the euro zone crises. This indicates that economies of these nations should work on strengthening of economic fundamentals. Keywords: Eurozone crisis; Causality test; Principal component analysis; BRIC. 1.0 Introduction All financial crises share certain features, but each expresses its own exclusive story and has its own distinctive teachings for the coming future. The paper aims is to measure the Euro zone crisis in each of the 4 BRIC (Brazil, Russia India and China) nations during 2008-2009. The Euro crisis has created challenging situation as well as new opportunities for these emerging markets. The BRIC economies are now seen as a good place to invest and to trade with as compared to sick Eurozone nations during the crisis period. The European Union and BRIC have important goods and service trade linkages. The Euro crisis has severely affected BRIC economies. ___________________ *Corresponding author; Assistant Professor, Faculty of Management Studies, University of Delhi, Delhi, India. (E-mail: kalsieanjala@gmail.com) **Research Scholar, Faculty of Management Studies, University of Delhi, Delhi, India. (E-mail: jaya31decent@gmail.com) ***Assistant Professor, Shaheed Sukhdev College of Business Studies, University of Delhi, Delhi, India. (E-mail: phd_ashima.a13@fms.edu)