ECONOMIC RECESSION

&
ITS EFFECT ON INDIA

PRESENTED BY:-
SHIV KR. PANDEY
pgdm-II (ITS Ghaziabad)
 WHAT IS RECESSION ?

The term recession is generally used to

describe a situation in which a country's
GDP, or gross domestic product, sustains a
negative growth factor for at least 2
consecutive quarters.

GDP = consumption + gross investment + government

spending + (exports − imports)
‘Significant decline in economic activity
lasting more than a few months”
 CAUSES OF RECESSION
• actions taken to control the money supply in
the economy.
• Unbalanced equation between money
supply, interest rates & the inflation.
• Federal Bank Failures in 2008
 Act for money balancing in economy

Federal reserve Changing the interest rates Short term growth

Balanced or Unbalanced or
favourable unfavourable result
result

Economc recession
GDP growth
 EFFECT OF RECESSION
• Economic landscape
• Inequality in income of individuals
• Poverty
• Perception about the economy of developed
countries
EFFECT ON INDIA

Job uncertainty
Money depreciation
Share market crisis
 INDIAN CONCERN ON RECESSION

•India always ready to face such type of crisis?

•Terrorist attacks, & share market crisis has made us
used to of facing disasters..
•Indian social & political system is more flexible as it
absove any kind of jerk coming to it.
•50-60% of the indian population has still not get
connected with the globalization era .
 RECESSION OPPORTUNITY OR
DISASTER

Developed countries are less prepared to face the crisis,

with their low GDP growth, stagnant domestic market.
 GOLDEN OPPORTUNITY FOR INDIA

emerging economies are dynamic

as their GDP is expanding, the
domestic market is growing and
the financial system is in a sound
condition.
The developing countries
therefore are most likely to be the
engine of global economic growth
in the decades to come
Conclusion:-
So we can say that yet the current economic recession is a big
disaster for the whole world as well as for india also . but if we
compare the effect on the countries then we will find india in a
better position. Because in Indian system we have maintained a
flexibility for external factors whether it is economical crisis or
it is a terrorist attack . we get overcame from the condition. the
worst experiances in the history has made us used to of facing
such type of financial crisis. Yet it has made some effect on
some functions of indian system like poverty, income of an
individual, but we can not conclude that we are in trouble .
because the flexibility of indian economy & indian system
protect it from the external factors
THANK YOU

PRESENTED BY:-
SHIV KR PANDEY
shivpandey1986@gmail.com