1. RECESSION & ITS EFFECTS ON
UNITED KINGDOM & INDIA
Submitted by -
Devriti R. L. Rana
Section D
A1802010152
MBA-IB(2010-12)

2. U.K. – Country Fact File
 United Kingdom constitutes of England, Northern
Ireland, Scotland and Wales.
Area Population Devolved Legal
Flag
(km²) (2010 estimate) Capital legislature system
Name
England 130,395 51.6 million London No English law
Scotland 78,772 5.2 million Edinburgh Yes Scots law
Contemporary Welsh
Wales 20,779 3.0 million Cardiff Yes
Law
Northern Ireland None 13,843 1.8 million Belfast Yes Northern Ireland law
United Kingdom 243,789 62.1 million London

3. Government & Economy
 The United Kingdom is a constitutional monarchy and
parliamentary democracy, with a queen and a parliament
that has two houses: the House of Lords, with 574 life
peers, 92 hereditary peers, and 26 bishops; and the
House of Commons, which has 651 popularly elected
members.
 England is the largest constituent part of the United
K ingdom and accounts for 83 per cent of its population and
,
m of its econom activity.
ost ic
 The UK is the 6th largest economy in the world in 2010
according to nominal GDP (current prices, US dollars) and
the 8th largest in the world according to GDP (PPP). In
2010, UK’s GDP (PPP) was US$2.172 trillion or 2.982%
of the world’s GDP.
 UK still maintains its own economy and has chosen to
continue using the Pound Sterling as its national currency

4. Others
 English, Welsh, Irish, Ulster Scots, Cornish, Gaelic and British Sign
Language are natively used in the United kingdom.
 A Multicultural Society
 How meetings are conducted is often determined by the composition of
people attending:
 If everyone is at the same level, there is generally a free flow of ideas and
opinions.
 If there is a senior ranking person in the room, that person will do most of the
speaking.
 Meetings always have a clearly defined purpose, which may include an agenda.
 There will be a brief amount of small talk before getting down to the business at
hand.
 If you make a presentation, avoid making exaggerated claims.
 Make certain your presentation and any materials provided appear professional
and well thought out.
 Be prepared to back up your claims with facts and figures. The British rely on
facts, rather than emotions, to make decisions.
 Maintain eye contact and a few feet of personal space.
 After a meeting, send a letter summarizing what was decided and the next steps
to be taken.

5. Experience
 I had the opportunity of exploring Singapore in the year 2009 and London in 2010 and 2011. The
experience was explicit and a lot of global exposure was intaken.
 After a long history on United Kingdom, as stated above, let me share a little of my personal experience in
U.K. I reached London on 29th of September, 2011 to study in Amity London, located in the Central
London at Tottenham Court Road. Our classes were held in Birkbeck University which was a 5 minutes’
walk from amity house. The subjects taught to us were –
 Marketing management.
 Finance management.
 Human Resource.
 Organisational behaviour.
 All of which were taught in line with the British education system. It was a whole new experience as we
have more interactive classes there and a lot of visits to industries and places, some being –
 Jaguar
 BPC
 Windsor castle
 Oxford university
 Cambridge university
 Cadbury’s

6. Scope and limitations of the
study….
 The study aims to cover issues regarding the recession and its
adverse effects on the economies.
 It shall provide a clear picture of where the economies stand as of now.
 The study shall prove to be a helpful source to all institutions and
individuals interested to analyze recession and its effect on the world’s
two major economies.
Limitations
 The time given was too less for the completion of the research.
 It was difficult to collect data as recession has been frequent in the
past 100 years and studying of different periods was slightly
cumbersome.

7. Research Methodology
Serial No. Description Type
1. Objective To analyze the degree of
effect recession had on
the two economies.
2. Research design Exploratory and
Descriptive.
3. Sample Area Economies of U.K. and
India.
4. Type of Data Secondary.

8. Comparative Study on the Effects
of Recession on U.K. & India
 The main reason for UK facing severe effects of recession was that they
invested in CDOs(Collateralized Debt obligations). Borrowers started to
default on their loans and the value of these investments plummeted
resulting in huge losses for banks globally.
 Most people in the UK have little interest in the stock market unlike India
where many have their pensions and savings invested in it. Most people
believe that the stock market in some way reflects the commercial
processes that are in train around the World. This is another major reason
for the difference in the effect of recession on both economies.
 UK, being a developed country, and India still a developing economy, has
its excess money created by monetary inflation going first into capital
markets and then to buy stock and bonds, whereas in India the excess
money that is created by inflation is invested on long term bonds and
securities directly, giving the government a long term surety.
 The Indian economy was not adversely affected by the current round of
global volatility, compared to the U.K., which faced long term policy
changes due to the recent credit crunch. Indian Finance Ministry sources
argue that the Indian economic growth story is so robust that the current
uncertainty will cause no more than a minor blip in its confident trajectory.

9. Recommendations
 Now that we have a clear scenario of the
recession scenario in UK and India, we can
now see why these countries had to face the
crisis and all the methods and policies they
adapted.
 Cutting Interest Rates
 Short Term stimulus /Long Term Structural
change
 Preventing Home repossessions.
 Expansionary Fiscal Policy
 Devaluation
 Quantitative Easing


10. Conclusion
 The current global economic recession is probably the best thing that could have
happened for the global environment. Anything that helps to reduce consumption
and persuades people to behave in a more frugal manner helps to protect the
environment. What is clear is that the environmental lobby will get what it wants but
not in the way that it expected.
 Over the last twenty years the British Government has been doing very well at cutting
the country's carbon emissions. Destroying the countries manufacturing capability
and then its service sector has seen a significantly reduction in the country's carbon
footprint.
 Nobel Prize winner Paul Krugman said up to $5 trillion money can expedite recovery
from recession and projects such as Freight rail could bring fast money. Many more
solutions have been talked about but things will not recover soon. In case all turns
out to be in vain, time is the greatest healer. Let’s wish time moves faster than ever
expected and the wound gets healed soon. At the end I would like to share a phrase
I read somewhere –
Recession is ‘Greed of som woes of B
e, illions’.