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

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some slides are directly cut & pasted as to make this attractive. Good for economics under graduates

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Global economic crisis

  1. 1. GLOBAL ECONOMIC CRISIS & IMPACT ON INDIA
  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

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