A recession is defined as a significant decline in economic activity lasting more than a few months, as measured by declines in GDP, income, employment, production, and sales. Recessions are caused by factors like booms in sectors like real estate that lead to overconsumption, declining stock markets, and effects on related sectors. While India is not currently in a recession, it is experiencing an economic slowdown, with impacts like decreased interest from foreign buyers in Indian real estate and construction projects being halted due to lack of demand and liquidity issues.