Professional Documents
Culture Documents
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This leads to a decreased demand for goods and services,
which in turn leads to a decrease in production, lay-offs and a
sharp rise in unemployment. Investors spend less; as they fear
stocks values will fall and thus stock markets fall on negative
sentiment. Risk aversion, deleveraging and frozen money
markets and reduced investor interest adversely affect capital
and financial flows, import-export and overall GDP of an
economy. This is exactly what happened in US and as a result of
contagion effect spread all over the world due to high
integration in the global economy.
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OBJECTIVES
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HYPOTHESIS
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• This leads to a decreased demand for goods and services,
which in turn leads to a decrease in production, lay-offs
and a sharp rise in unemployment.
• Investors spend less as they fear stocks values will fall and
thus stock markets fall on negative sentiment.
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RESEARCH METHODOLOGY
It has covered all the research which is being out and all
the methods which are used, how they are being adopted to seek
of the desired objectives.
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1. Research Work :
a) Fundamental Research.
b)Applied Research.
2. Sampling :
i) Census Survey :
ii)Sample Survey :
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Methods of Data Collection
1) Primary Data.
2) Secondary Data.
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Secondary Data :
BOOKS.
WEBSITES.
JOURNALS.
MAGAZINES.
NEWSPAPER.
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INTERNET
LIMITATIONS
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REVIEW OF RELATED LITERATURE
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markets, and a severe contraction in world economic demand.
Global economic growth declined from 5.2 per cent in 2007 to a
forecast -1.1 per cent in 2009. The crisis also caused a
significant change in the prospects of developing countries.
Economic growth in developing countries in 2009 is projected
to be 1.7per cent. This is substantially lower than the observed
growth rate of 8.3per cent in 2007.
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RECESSION IN INDIA
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period except 1998 and 2001. To make matters worst, a member
of the PM’s economic advisory council and director of the
National Institute of Public Finance and Policy have confessed
that India is going through industrial recession.
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RECESSION 2008
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Oil is extremely important for any country and 2008
witnessed highest ever increase in oil prices. Due to high oil
prices, food prices also increased significantly. Crude oil prices
rose to $ 147 per barrel from $ 80 per barrel in a span of 6-7
months. That fuelled global inflation to a dangerous mark. 2008
also witnessed unprecedented credit crisis across the world
which resulted in closure of several established investment
banks.
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several other measures to stem the fall but nevertheless, we
seem to be going through economic recession.
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substantial likelihood that this will be the worst recession since
the Great Depression of the 1930s.
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Global meltdown: Complete coverage
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What about India? How bad will it get for us? The official
estimates of GDP growth for the first two quarters of 2008/9
stayed above 7.5 percent. However, industry-wide indications
after September are uniformly gloomy. There are reports of
significant declines in output of automobiles, commercial
vehicles, steel, textiles, petrochemicals, construction, real estate,
finance, retail activity and many other sectors.
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growth momentum from adverse external conditions? The short
answer is: only to a limited degree. I outlined the main
arguments last fortnight (BS, November 27).
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Against this background the government was wise to limit
last Sunday's "fiscal stimulus" to a modest affair, totaling only
about Rs 30,000 crore (Rs 300 billion), out of which two-thirds
was for "additional plan expenditure", which may not be fully
spent this fiscal year.
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In this context a 6 percent economic growth in 2009/10
will be pretty good...if we achieve it.
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In addition, Market Sense compared 101 household name
brands during the recessionary period 1989-1991 are as
follows :-
Pizza Hut sales rose 61% and Taco Bell's 40% thanks to
strong advertising support, with McDonald's volume down
approximately 28%.
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WHAT CAUSES IT?
Investors spend less as they fear stocks values will fall and
thus stock markets fall on negative sentiment.
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STOCK MARKETS & RECESSION
The economy and the stock market are closely related. The
stock markets reflect the buoyancy of the economy. In the US, a
recession is yet to be declared by the Bureau of Economic
Analysis, but investors are a worried lot. The Indian stock
markets also crashed due to a slowdown in the US economy.
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The worries for exporters will grow as rupee strengthens
further against the dollar. But experts note that the long-term
prospects for India are stable. A weak dollar could bring more
foreign money to Indian markets. Oil may get cheaper brining
down inflation. A recession could bring down oil prices to $70.
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WHAT HAS HIT INDIA ?
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MEASURES TO TACKLE RECESSION
• Tax cuts are generally the first step any government takes
during slump.
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DATA ANALYSIS AND INTERPRETATIONS
Due to the crisis, 11 more million people in East Asia and the
Pacific will be in poverty in 2009 (Millions)
This graph uses vertical bars that span the entire layer, to
indicate periods of recession.
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This graph shows the unemployment rate of civilians.
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CONCLUSIONS AND SUGGESTIONS
CONCLUSIONS
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• During recession Investors also spend less in the industries
and this was also one of the main problems faced by
various industries like IT industries, etc.
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SUGGESTIONS
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BIBLIOGRAPHY
http://www.google.com
http://www.scribd.com
http://www.wikipedia.com
http://www.rediffmail.com
http://www.investopedia.com
http://www.investorwords.com
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