The document summarizes the global economic crisis and its impact on India. It discusses how the subprime crisis originated from greed of investment bankers and failure of regulators. This led to a boom and speculation in the housing market. For India, about 30,000 IT jobs were impacted and IT revenues declined. The rupee sharply depreciated against other currencies. Foreign exchange reserves outflow increased. Investment flows and stock markets declined significantly. Exports contracted due to reduced global demand, impacting India's export-oriented economy and increasing unemployment. Inflation rose sharply in India as the central bank revised rates multiple times.

1. GLOBAL ECONOMIC
CRISIS
&
IMPACT ON INDIA

3. Background
Of
Subprime crisis •Greed of Investment
bankers
•Failure of Regulating
authorities
•Fallacious rating by rating
agencies

6. •Boom in the housing market
•Speculation
•High risk mortgage loans
•Securitization practices
•Inaccurate credit rating

8. Information technology
• US banks had huge running relation with Indian
software sector
• About 30000 jobs were impacted
• Revenues from the IT field declined

9. Exchange rate
• Exchange rate volatility in India increased
• Rupee depreciated sharply
• Rupee fell by nearly 25%

10. Foreign exchange outflow
• Indian economy greatly integrated with the
global market
• Outflow of cash reserve

12. Investment
• Decline in the investment flow
• Doubts in the investment of mega project

14. Real estate
• Sudden slump in demand
• Curtail of expansion plans

15. Stock markets
• Steep fall in value of stocks
• Sensex plunged below 10000 marks
• FII pulled out $11 billion from India

16. Exports
• Crisis contracted demand for exports
• Crisis affected Indian economy as it is export
oriented
• Rise in unemployment

17. Unemployment
• Increase in unemployment
• Layoffs and wage cuts took place in companies
• Millions of jobs were lost n the whole world

22. •Impact on FDI
•Software sector
•Inflation
•Exchange rate depreciation

23. Impact on FDI
• No significant impact on FDI
• Out flow of FII
• Share of FDI by Euro zone is less

24. Software Sector
• Net earnings from software sector
Declined by 7.4%

25. India's exports
• Positive relation between India's exports and
world GDP.
• Elasticity of India's exports with world GDP is
0.29
• Slow down in world economy

26. Inflation
• Inflationary rate rose sharply
• Central bank revised bank rates 5 times
• Domestic inflation stood at 9.7% in Oct 2010

27. Presented By,
Adarsh Simmy Manuel