Impact of global recession on India
America is the most effected country due to global recession, which comes as a bad news for India. India have most outsourcing deals from the US. Even our exports to US have increased over the years. Exports for January declined by 22 per cent.
Recession in the West, specially the United States, is a very bad news for our country. Our companies in India have most outsourcing deals from the US. Even our exports to US have increased over the years. Exports for January have declined by 22 per cent. There is a decline in the employment market due to the recession in the West. There has been a significant drop in the new hiring which is a cause of great concern for us. Some companies have laid off their employees and there have been cut in promotions, compensation and perks of the employees. Companies in the private sector and government sector are hesitant to take up new projects. And they are working on existing projects only. Projections indicate that up to one crore persons could lose their jobs in the correct fiscal ending March. The one crore figure has been compiled by Federation of Indian Export Organisations (FIEO), which says that it has carried out an intensive survey. The textile, garment and handicraft industry are worse effected. Together, they are going to lose four million jobs by April 2009, according to the FIEO survey. There has also been a decline in the tourist inflow lately. The real estate has also a problem of tight liquidity situations, where the developers are finding it hard to raise finances.
IT industries, financial sectors, real estate owners, car industry, investment banking and other industries as well are confronting heavy loss due to the fall down of global economy. Federation of Indian chambers of Commerce and Industry (FICCI) found that faced with the global recession, inventories industries like garment, gems, textiles, chemicals and jewellery had cut production by 10 per cent to 50 per cent.
How to tackle the global slump?
“Our economy is shrinking, unemployment rolls are growing, businesses and families can’t get credit and small businesses can’t secure the loans they need to create jobs and get their products to market,” Obama said.
“With the stakes this high, we cannot afford to get trapped in the same old partisan gridlock.”
The following measures can be adopted to tackle the recession:
“With the stakes this high, we cannot afford to get trapped in the same old partisan gridlock.”
The following measures can be adopted to tackle the recession:
- Tax cuts are generally the first step any government takes during slump.
- Government should hike its spending to create more jobs and boost the manufacturing sectors in the country.
- Government should try to increase the export against the initial export.
- The way out for builders is to reduce the unrealistic prices of property to bring back the buyers into the market. And thus raise finances for the incomplete projects that they are developing.
- The falling rupees against the dollar will bring a boost in the export industry. Though the buyers in the west might become scarce.
- The oil prices decline will also have a positive impact on the importers.
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.thanxxxxx......................for all dis support..................try to give new ideas!!!!!!!!!!!1
.thanxxxxx......................for all dis support..................try to give new ideas!!!!!!!!!!!1
.During the recession period, India was the only country which have the least effect of recession.
.In india the impact of recession is not felt, as there is a job market in IT for very talented and experienced people. The impact is not felt in the other sectors in India. The US should adopt indian way of doing business.
.Very well written, it helped for my Public Speaking exercise in my GMCS Batch. My teacher was very proud of me.
.The artical has tried to write very precisely the impact of global recession on inian firms was kwonledgable one also
.The artical has tried to write very precisely the impact of global recession on inian firms was kwonledgable one also
.the article is very good stating the measures that can be adopted by the Govt,but the author could have given a wider perspective on the issue.
.Article is really very nice as it is written in very simple terms and most importantly it is straightforward which makes it easily understandable..
.The point written in the tackling of recession are looks contradictory to eachother to me.
First measures says that Tax cuts should be the first step and we should consider thios fact that Taxes are one of the major income source for govement which she use for the new development works like creating jobs shich is the second priorty measure.
.It was great. Can u please update the article right now. Has your projection come true. else was there any variation.
.simply a great effort in jolting down the effects of recession on indian economy .Keep it up.Best wishes
.undoubetedlil,the information is quite useful but not sufficient.we want more information on the related issue..
.Hi! The article should talk more about the measures to be adopted to tackle the current economic slump. Moreover, there is a tad lack of emperical study which is why it cannot pull out the figures well. As per the title, the article should talk more about India's present condition and outline the impact of the slowdown on its key industries.
.this all written is the effect of US slowdown on Indian economy, but how it took place in US economy
.Its a narrow vision of writer. The impact is quite large, but content is too small. I am dissapointed
It is more than enough, because government support has been added to this. It is very clear that economic conditiond can't be good untill & unless government support is not there
.There is a way out of any problem if the world community comes together. Wisdom and a sense of purpose is only necessary to tackle any crises affecting the economy.
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