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Recession,with its all aspect and impacts with measures to control it.

Recession,with its all aspect and impacts with measures to control it.



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Recession Recession Presentation Transcript

  • By Mr. Krishnkant Naugaria This presentation covers all the aspect and the impacts of the recession on the globe and India as well, and the measures to control for the same have been also mentioned. 11/16/2013 Mr. Krishnkant Naugaria
  • What is Recession??? 11/16/2013 Mr. Krishnkant Naugaria
  • A recession is a business cycle contraction, It is a general slowdown in economic activity. Recession is the economy shrinking for two consecutive quarters (=6 months) with a decrease in the GDP (=Gross Domestic Product) 11/16/2013 Mr. Krishnkant Naugaria
  • There is a joke that economists quote to explain the Difference between “Recession & Depression” RECESSION = WHEN YOUR NEIGHBOR LOSES HIS JOB DEPRESSION = WHEN YOU LOSE YOUR JOB 11/16/2013 Mr. Krishnkant Naugaria
  • How to know recession? Indicators to say a nation is in recession; - People buying less stuff - Decrease in factory production - Growing unemployment - Slump in personal income - An unhealthy stock market 11/16/2013 Mr. Krishnkant Naugaria
  • Causes of recessions - Currency Crisis - Energy Crisis - Under Consumption - Over Production - Financial Crisis 11/16/2013 Mr. Krishnkant Naugaria
  • 11/16/2013 Mr. Krishnkant Naugaria
  • Strengths  Good work force can be prepared by recruiting skilled employee during the recession easily  Low cost work force  Mistakes or the wrong decision can be analyzed  Enough time to maintain work life balance 11/16/2013 Mr. Krishnkant Naugaria
  • Weaknesses  Household income decreases  Business profit decreases  Buying capacity decreases  Demotivation in people arises  Living standard of people decrease which tends to Unhealthy living environment Unhygienic and low grade edibles demand increases 11/16/2013 Mr. Krishnkant Naugaria
  • Opportunity The it can be splited into two categories : 1- Opportunities to public  Goods and services are available at lower cost  Slash in the price of real estate  Investment become easy 11/16/2013 Mr. Krishnkant Naugaria
  • 2- Opportunities to organization  Bureaucracy and politician becomes more co-operative  The efficient workers are able to survive in the organization, these in turn leads to increment quality goods and services  The remunerations other expanses are decreased which in turn increases the saving  Policies become flexible 11/16/2013 Mr. Krishnkant Naugaria
  • Threats  High unemployment & job cutting rate  Bankruptcies & black money circulation increases  Inflation increases & GDP decreases  Crime graph increases & research rate decreases  Productivity decrease & dumping of product increases 11/16/2013 Mr. Krishnkant Naugaria
  • Effect of recession on INDIA On the Negative side :  The decrease in consumption in developed countries, Indian export market could be hited  As the developed countries are the largest market for Indian IT exporters, so a weak global economy can land to dip in IT business  Both the import and export will be affected 11/16/2013 Mr. Krishnkant Naugaria
  • Cont.. On the Positive side :  The decline in the commodity price & hence easing of inflationary pressure  Slash in the crude oil price will help in bringing down the inflation.  There may higher inflows of foreign investors, this will lead to appreciation of rupee 11/16/2013 Mr. Krishnkant Naugaria
  • How to come out of recession? It is unhealthy for any nation to be in Recession. So, government will take certain countermeasures to eliminate or reduce the effect of recession  Government has 2 plans Fiscal Policies (By Govt.) Government influences the economy by changing how it (Government) spends and collects money 11/16/2013 Mr. Krishnkant Naugaria Monetary Policies (By RBI) RBI manipulates the available supply of money in the country
  • Fiscal Policies 1] Tax cuts for businesses or for individuals More money available for spending Demand picks up; Market can recover; 2] Automatic Some income to fiscal policy; unemployed Unemployment people to spend Insurance 11/16/2013 Mr. Krishnkant Naugaria
  • Monetary Policies 1] Reduce reserve ratio More money available for bank to give loans 2] Lower the interest rates Individuals take more loan It becomes an 3] Use its own income to Govt. reserved to inject money money to buy into the Govt. bonds Mr. Krishnkant Naugaria market 11/16/2013 Demand picks up; Market can recover;
  • Suggestions  Promoting people to purchase and invest in the        market More Spending by Government to create new jobs Limiting production Attractive policies for the people having cash reserve Cut down in labour size Cutting down loan interests and promoting them Organizing investors summit Bringing old closed public mills to the functioning 11/16/2013 Mr. Krishnkant Naugaria
  • Appreciation & Depreciation of Rupee At first let us assume that in case, you go to a bank and asks the bank that you intend to buy US$100, bank ask you to pay Rs 5400. Now after some time you go to bank,  Depreciation, you pay Rs 5500 means you have pay more to receive the same amount of US $.  Appreciation, you pay Rs 5440 means you have to pay less amount to buy the same amount of US $. 11/16/2013 Mr. Krishnkant Naugaria
  • Why we are able to stand in or after recession??? We have economics sizeable enough to matter on the global scale and are growing at a faster rate then the developed world. Since the import from India is not so remarkable, hence any crisis in the west which leads to lower consumption in there would not be much adverse affect on India 11/16/2013 Mr. Krishnkant Naugaria
  • Conclusion  There is a panic among investors & they are rushing to     get out of risky assets like stocks. As the outcome of all these development the demand for gold has increased. As gold is seen as a safe haven, its price has risen to record high. The industries are sensitive to high interest rate. The RBI & our Government is prepared for any repercussion in the financial market 11/16/2013 Mr. Krishnkant Naugaria
  • RBI’s Power or Government’s Power is double-edged sword; Sometimes, their policies to recover from recession can be counter-productive and it may further worsen the situation. Nation’s recession is controlled by the actions of everybody living in that country. 11/16/2013 Mr. Krishnkant Naugaria
  • References   Employment news  Magazines Frontline Outlook  Newspaper 11/16/2013 Mr. Krishnkant Naugaria
  • 11/16/2013 Mr. Krishnkant Naugaria