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IMPACT OF GLOBAL RECESSION ON       INDIAN ECONOMY           Manuel M Mathew           ST.Thomas College Pala
WHAT IS RECESSION??? The   reduction of a country’s    Gross Domestic Product(GDP)    growth rate for at least two    qua...
DEFINITION Significant            decline in economic activity lasting more than a few months,which is normally visible i...
ACID TEST OF RECESSION     PEOPLE BUYING LESS STUFF      DECREASE IN FACTORY  PRODUCTION      GROWING UNEMPLOYMENT      SL...
CURRENT GLOBAL SCENARIOEUROZONE(PIIGS)-SOVEREIGN DEBT CRISISUSA-TWIN DEFICIT(FISCAL & CURRENT ACCOUNT)CHINA-RECORDING DOWN...
INDIAN SCENARIO   WEAK INDUSTRIAL GROWTH   SLOWDOWN IN INVESTMENT ACTIVITIES   7.6%   DIP IN OUTPUT GROWTH   INFLATION...
IMPACT ON TRADE             INDIA           ADVANCED           COUNTRIESREVENUE                  EXPORTDECLINES           ...
IMPACT ON FINANCIAL MARKET     SHARP DECLINE OF EQUITIY PRICES     REVERSAL OF FIIs     DEPRECIATION OF RUPEE AGAINT US...
CONFIDENCE CHANNELS   FALL IN BUSINESS MOMENTUM   LOST CONFIDENCE   RELUCTANT TO INITIATE NEW VENTURES   EVEN RBI GIVE...
MEASURES TAKEN BY INDIA   SEBI LIBERALISED ITS NORMS TO ATTRACT QFIs   CAP ON GOVT. SECURITIES ENHANCED   MEASURES TO A...
A RAY OF HOPE FROM EUROPE……   EUROZONE AGREES FOR BANKING UNION   EMERGING ROLE OF ECB   IMFs BAIL OUT FUND OF $750bn T...
TO CONCLUDE……   ATTRACT MORE FOREIGN INVESTMENT   STRENGTHEN DOMESTIC MARKET   SWIFTER IMPLEMENTATION OF NMP   AUGMENT...
THANK YOU……..
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India recession

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how the global recession affects Indian Economy

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India recession

  1. 1. IMPACT OF GLOBAL RECESSION ON INDIAN ECONOMY Manuel M Mathew ST.Thomas College Pala
  2. 2. WHAT IS RECESSION??? The reduction of a country’s Gross Domestic Product(GDP) growth rate for at least two quarters A recession is a contraction phase of business cycle
  3. 3. DEFINITION Significant decline in economic activity lasting more than a few months,which is normally visible in real GDP ,real income,employment,industrial production and wholesale-retail sales
  4. 4. ACID TEST OF RECESSION PEOPLE BUYING LESS STUFF DECREASE IN FACTORY PRODUCTION GROWING UNEMPLOYMENT SLUMP IN PERSONAL INCOME AN UNHEALTHY STOCK MARKET
  5. 5. CURRENT GLOBAL SCENARIOEUROZONE(PIIGS)-SOVEREIGN DEBT CRISISUSA-TWIN DEFICIT(FISCAL & CURRENT ACCOUNT)CHINA-RECORDING DOWNWARD GROWYHJAPAN-TRADE DEFICIT FOR THE FIRST TIME INLAST IN LAST32 YEARS
  6. 6. INDIAN SCENARIO WEAK INDUSTRIAL GROWTH SLOWDOWN IN INVESTMENT ACTIVITIES 7.6% DIP IN OUTPUT GROWTH INFLATIONARY RISK DEPRECIATION OF RUPEE 6.9%
  7. 7. IMPACT ON TRADE INDIA ADVANCED COUNTRIESREVENUE EXPORTDECLINES DECLINES DEVELOPING COUNTRIES
  8. 8. IMPACT ON FINANCIAL MARKET  SHARP DECLINE OF EQUITIY PRICES  REVERSAL OF FIIs  DEPRECIATION OF RUPEE AGAINT USD 57.15 !
  9. 9. CONFIDENCE CHANNELS FALL IN BUSINESS MOMENTUM LOST CONFIDENCE RELUCTANT TO INITIATE NEW VENTURES EVEN RBI GIVES A VAGUE EAPLANATION
  10. 10. MEASURES TAKEN BY INDIA SEBI LIBERALISED ITS NORMS TO ATTRACT QFIs CAP ON GOVT. SECURITIES ENHANCED MEASURES TO ATTRACT NRI DEPOSITS GOVT.’S PLAN OF HUGE INFRASTRUCTURAL INVESTMENT INCENTIVES FOR EXPORT PROMOTION
  11. 11. A RAY OF HOPE FROM EUROPE…… EUROZONE AGREES FOR BANKING UNION EMERGING ROLE OF ECB IMFs BAIL OUT FUND OF $750bn TO EUROZONE
  12. 12. TO CONCLUDE…… ATTRACT MORE FOREIGN INVESTMENT STRENGTHEN DOMESTIC MARKET SWIFTER IMPLEMENTATION OF NMP AUGMENTING INFRASTUCTURAL DEVELOPMENT
  13. 13. THANK YOU……..

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