The global recession originated from the US sub-prime mortgage crisis where risky loans were given to borrowers with poor credit. This led to a stock market crash and decline in exports for India. The Indian economy was impacted through a weakening rupee, cash crunch for banks, job losses, and lower salaries. While India's growth rate slowed, it was still expected to grow at 7% annually. The recession presented both challenges like higher inflation and opportunities for India to demonstrate its ability to grow independently.

1. IMPACT OF GLOBAL RECESSION ON INDIAN ECONOMY BY Nisha Siraj Poornima Riyas

3. SUB-PRIME CRISES The US Sub-Prime Crises was the reason for Global Recession S u b p rimecrisis means the borrower is below what is considered a prime candidate for a mortgage An undervaluation of real risk

4. IMPACT OF GLOBAL RECESSION IN INDIA Stock Exchanges based on US and Europe (FIIs) Sudden sale of Stocks – Stock Market Crash & industries in general(no WC). Exports come down Layoffs Work long for less salary Rupee weakening against dollars Banks on severe Cash Crunch

5. Global Recession Loans to NINJA(No income, No Job, No Assets) Sub-PrimeLending ARM (Adjustable Rate Mortgage) Reckless Lending Increase in Loan Agents & Financial companies

6. “recession is the real killer not the terrorists” Recession cuts down exports and cool investment - before Mumbai Blast Decline in the economy began before attacks 2 of 3 hotels & Café which were targets of attack have reopened the business

7. INDIA IS GROWING SLOW

8. Growth after Recession Growth of 9.8% in 2007-08 Expected growth is 7% but inflationary gap will reduce. 10% Growth in 2010-11 Best returns from stock markets CHALLENGES AHEAD OF 2009 Getting inflation under control Spreading the benefits of growth more equitably. Completing investment projects which are essential for long term development of economy. Dealing with global financial uncertainty, which will make capital flows and exports more difficult

9. PLUS AND MINUS PLUS ↓cost of living Export goods sold locally ↓products price ↓in real estate helps common man MINUS Job Scarcity High Retrenchment Low Liquidity Hit in export market

10. Automobile Industry INDIA Decline in Sales September – best month into bad month Tata, Maruthi Suzuki went under loss

11. Findings Cutting CRR rate – money supply China & India China – Manufacturing and exporting India – Selling the Services (KPO,BPO) 2 009 – Not so good – Barrack Obama to keep employement Good time to show India can work Independent

12. T H AN K Y O U