The document discusses the recession of 2008-2009 and its impacts. It provides background on what constitutes a recession and describes effects on the Indian insurance sector like reduced sales and policies due to factors such as credit crunches, decreased savings, and rising unemployment. It also outlines government fiscal and monetary policies to stimulate the economy through measures like tax cuts, increased spending, lowered CRR, repo, and reverse repo rates.

1. The Recession of 2008-2009: How Painful Will It Be?

3. Recession and its impacts on insurance sector in India.

5. Investments in india in different types of policies of LIC and other insurance companies. (In billions.) Source:- IRDA

6. Savings Rate in india Source: Commerce Department, Bureau of Economic Analysis July 2008: 1.2% 2007 2008 2009

7. REDUCTION IN SALES OF INSURANCE SECTOR Source: IRDA Aug. 2008: $381.2 billion 2008 2009 Total retail sales in billions of dollars, seasonally adjusted.

8. REDUCTION IN SALE OF ULIP POLICIES Source: IRDA Aug. 2008: 100.8 2007 2008 2009

9. Sales of new insurance policies. Source: TIMES OF INDIA July 2008: 515,000

10. Percentage change in sale of new policies. 2004 2005 2006 2007 2008 0

11. Deficit in Indian Insurance Trade Source: Economic times 2007 2008 July 2008: $62.2 billion

12. Consumer Confidence Index Source: Hindustan times 2007 2008 Aug. 2008: 56.9

13. INDIA’S Jobless Rate In percent, seasonally adjusted: Source:Department of Labor 2008 2009

14. Increament in Unemployment Rate in india due to recession. Source: Indian Workforce Commission

21. Government Fiscal Policies Government influences the economy by changing how Government spends and collects money 1] Tax cuts for businesses or for individuals More money available for spending Demand picks up; Market can recover; 2] More spending by Govt. to create jobs Individuals get salary and spend money 3] Automatic fiscal policy; Unemployment Insurance Some income to unemployed people to spend Fiscal Policies

22. Government Monetary Policies 1] Reduce CRR for banks More money available for bank to give loans Demand picks up; Market can recover; Government manipulates the available supply of money in the country Monetary Policies 2] Lower the Repo & Reserve repo rates` Individuals take more loan

23. What about India in global market crises Most of the developing economies like China, India; Currently, Slow Down Stage; Not yet in Recession Most of the developed economies like US, Japan, Germany, etc Currently, in Recession GDP Growth Rate Down; But, Still expected to be Around 6% in India GDP Growth Rate Negative;

24. Don’t worry What goes down will always go up, Markets will rebound – these tips will prepare you to be a winner !! HOPING THIS TIME RECESSION VANISHES SOON SO THAT INDIA GETS BACK TO ITS STRONGER GDP GROWTH RATE OF 8% TO 10% . (AS PER THE EXPERSTS OPINIONS IT WILL LAST TILL Q3 of 2009 ).. You can be updated yourself with the current economic condition through ‘ Business TV-channels,News,News papers’.