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  • Global Meltdown and Itǯs Impact On INDIA

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    Amol Shenvi
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    The document discusses the global financial crisis that began in 2008 and its impact on India. It provides background on how the crisis originated in the United States due to a liquidity shortage and collapse of large financial institutions. This resulted in a severe global economic recession. For India, the economic slowdown in the US had negative effects such as foreign investors withdrawing funds from Indian stock markets. Exports to the US declined as US demand for imports fell. However, India was able to remain the second fastest growing economy through the crisis due to its large internal market and less dependence on global trade compared to other countries. The government announced economic stimulus measures and the crisis created new outsourcing opportunities for Indian companies.

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    Global Meltdown

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    The document discusses the global financial crisis that began in 2008 and its impact on India. It provides background on how the crisis originated in the United States due to a liquidity shortage and collapse of large financial institutions. This resulted in a severe global economic recession. For India, the economic slowdown in the US had negative effects such as foreign investors withdrawing funds from Indian stock markets. Exports to the US declined as US demand for imports fell. However, India was able to remain the second fastest growing economy through the crisis due to its large internal market and less dependence on global trade compared to other countries. The government announced economic stimulus measures and the crisis created new outsourcing opportunities for Indian companies.

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    Attribution Non-Commercial (BY-NC)
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    Download as pptx, pdf, or txt
    21 views11 pages

    Global Meltdown and Itǯs Impact On INDIA

    Uploaded by

    Amol Shenvi
    The document discusses the global financial crisis that began in 2008 and its impact on India. It provides background on how the crisis originated in the United States due to a liquidity shortage and collapse of large financial institutions. This resulted in a severe global economic recession. For India, the economic slowdown in the US had negative effects such as foreign investors withdrawing funds from Indian stock markets. Exports to the US declined as US demand for imports fell. However, India was able to remain the second fastest growing economy through the crisis due to its large internal market and less dependence on global trade compared to other countries. The government announced economic stimulus measures and the crisis created new outsourcing opportunities for Indian companies.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
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    Global Meltdown and itǯs Impact on INDIA
    Presentatation on :

    Global Meltdown and


    itǯs Impact on INDIA
    á  
     

    DzIn my adult lifetime, I donǯt think


    Iǯve ever seen people as fearful,dz

    ǥ super investor Warren BuffettDz


    e worst financial crisis since t e great depression of 1930ǯs

    It was triggered by a liquidity s ortfall in t e United States banking


    system

    In 2008, 81 public corporations file for bankruptcy in t e United States

    Resulted in t e collapse of large financial institutions.

    significant decline in economic activity, lead to a severe global economic


    recession in 2008.
    _ 

    j   

     
          quantity of bad debt
    in t e system

    Major banks ave landed in trouble after people could not pay
    back loans.

    United states Housing bubble t at burstǥ


    |     
      
     

    j 
       

    In September 2008 , 159,000 jobs were lost due to crisis in US.

    US demand for imports from ot er countries indicated a


    decline.

    Downturns in stock markets around t e world.


    | |  
    |  
    
    

    A slowdown in t e US economy was a bad news for India.

    Foreign investors did wit draw $12 billion from Indiaǯs stock markets.

    India's exports to t e US ave also grown substantially over t e years.

    US demand for imports from India declined.

    Weakening demand led to producers cutting production w ic


    resulted in increased unemployment.

    e industries most affected by weakening demand were airlines,


    otels, real estate.
    Downsizing in I and Financial sector as companies cut costs.

    e Indian Information ec nology industry accounts for a 5.19% of t e


    country's GDP.

    A weakening of demand in t e US affected our I and


    Business Process Outsourcing (BPO) sector

    t e Foreign Direct Investment (FDI) started drying up and t is affected


    investment In t e Indian economy

    t e number of tourists inflow to india as come down.


    _ 
    
       
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    Despite an unprecedented global recession, India remained t e second


    fastest growing economy in t e world.

    Indiaǯs GDP grew by more t an 6% t roug out t is period Ȃ

    India is muc less dependent t an most countries on global flows


    of trade and capital.

    India relies on external trade for about 20% of its GDP .

    e countryǯs large and robust internal market accounts for t e rest.

    Indians continued producing goods and services for ot er Indians,


    and t at kept t e economy umming.

    o lift t e economy out of t e recession t e Government announced


    a package of Rs 35,000 crores in t e first instance on December 7, 2008.
    -
    -
      
    
       

    Most of t e stars of t e Wall Street collapse will continue.


    ese will generate new opportunities for low cost ig quality services.

    Many companies w o were not outsourcing certain processes will


    increasingly be forced to do so.

    e US Congress approved a revised $700 billion package to bail out


    t e US financial sector. is means major opportunity for
    India-based services companies
    ·   
    · 

    ü  
         
    he global financial meltdown will mean some tough times for
    its suppliers, but the fittest will survive - and emerge stronger.

    he global financial crisis can be turned into a great opportunity


    for growth in India.

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