The global recession has impacted the Indian economy through various channels. Slow industrial growth, declining investment activities, dipping output growth and inflationary risks have led to a weakening of the Indian scenario. Exports have declined for India while imports have fallen for advanced countries, impacting trade. The financial markets have seen a sharp decline in equity prices, reversal of foreign institutional investments, and depreciation of the rupee. Confidence has fallen as businesses are reluctant to initiate new ventures. However, India has taken measures like liberalizing norms to attract foreign investments and implementing an infrastructure investment plan to strengthen its domestic market and economy.

1. IMPACT OF GLOBAL RECESSION ON
INDIAN ECONOMY
Manuel M Mathew
ST.Thomas College Pala

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. 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. ACID TEST OF RECESSION
PEOPLE BUYING LESS STUFF
DECREASE IN FACTORY
PRODUCTION
GROWING UNEMPLOYMENT
SLUMP IN PERSONAL INCOME
AN UNHEALTHY STOCK MARKET

5. CURRENT GLOBAL SCENARIO
EUROZONE(PIIGS)-SOVEREIGN DEBT CRISIS
USA-TWIN DEFICIT(FISCAL & CURRENT ACCOUNT)
CHINA-RECORDING DOWNWARD GROWYH
JAPAN-TRADE DEFICIT FOR THE FIRST TIME IN
LAST IN LAST32 YEARS

6. INDIAN SCENARIO
 WEAK INDUSTRIAL GROWTH
 SLOWDOWN IN INVESTMENT ACTIVITIES 7.6%
 DIP IN OUTPUT GROWTH
 INFLATIONARY RISK
 DEPRECIATION OF RUPEE
6.9%

7. IMPACT ON TRADE
INDIA
ADVANCED
COUNTRIES
REVENUE EXPORT
DECLINES DECLINES
DEVELOPING
COUNTRIES

8. IMPACT ON FINANCIAL MARKET
 SHARP DECLINE OF EQUITIY PRICES
 REVERSAL OF FIIs
 DEPRECIATION OF RUPEE AGAINT USD
57.15 !

9. CONFIDENCE CHANNELS
 FALL IN BUSINESS MOMENTUM
 LOST CONFIDENCE
 RELUCTANT TO INITIATE NEW VENTURES
 EVEN RBI GIVES A VAGUE EAPLANATION

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. A RAY OF HOPE FROM EUROPE……
 EUROZONE AGREES FOR BANKING UNION
 EMERGING ROLE OF ECB
 IMFs BAIL OUT FUND OF $750bn TO EUROZONE

12. TO CONCLUDE……
 ATTRACT MORE FOREIGN INVESTMENT
 STRENGTHEN DOMESTIC MARKET
 SWIFTER IMPLEMENTATION OF NMP
 AUGMENTING INFRASTUCTURAL
DEVELOPMENT

13. THANK YOU……..