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Global economic crisis


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Its good for economic students and i have also tried to

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Global economic crisis

  2. 2. BackgroundOfSubprime crisis •Greed of Investment bankers •Failure of Regulating authorities •Fallacious rating by rating agencies
  3. 3. •Boom in the housing market•Speculation•High risk mortgage loans•Securitization practices•Inaccurate credit rating
  4. 4. Information technology• US banks had huge running relation with Indian software sector• About 30000 jobs were impacted• Revenues from the IT field declined
  5. 5. Exchange rate• Exchange rate volatility in India increased• Rupee depreciated sharply• Rupee fell by nearly 25%
  6. 6. Foreign exchange outflow• Indian economy greatly integrated with the global market• Outflow of cash reserve
  7. 7. Investment• Decline in the investment flow• Doubts in the investment of mega project
  8. 8. Real estate• Sudden slump in demand• Curtail of expansion plans
  9. 9. Stock markets• Steep fall in value of stocks• Sensex plunged below 10000 marks• FII pulled out $11 billion from India
  10. 10. Exports• Crisis contracted demand for exports• Crisis affected Indian economy as it is export oriented• Rise in unemployment
  11. 11. Unemployment• Increase in unemployment• Layoffs and wage cuts took place in companies• Millions of jobs were lost n the whole world
  12. 12. •Impact on FDI•Software sector•Inflation•Exchange rate depreciation
  13. 13. Impact on FDI• No significant impact on FDI• Out flow of FII• Share of FDI by Euro zone is less
  14. 14. Software Sector• Net earnings from software sectorDeclined by 7.4%
  15. 15. Indias exports• Positive relation between Indias exports and world GDP.• Elasticity of Indias exports with world GDP is 0.29• Slow down in world economy
  16. 16. Inflation• Inflationary rate rose sharply• Central bank revised bank rates 5 times• Domestic inflation stood at 9.7% in Oct 2010
  17. 17. Presented By, Adarsh Simmy Manuel