Financial Crisis

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Impact on Indian Economy

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GLOBAL FINANCIAL CRISIS IMPACT ON THE INDIAN ECONOMY : 

GLOBAL FINANCIAL CRISIS IMPACT ON THE INDIAN ECONOMY

INTRODUCTION : 

INTRODUCTION Indian economy tends to move From expansion to peak Peak to recession Current financial crisis worst of its kind World’s powerful economies are suffering than Indian economy

Indian approaches in current scenario : 

Indian approaches in current scenario India stands erect to face this crisis with many advantages and strengths Strength – Nuclear technology- to battle out the biggest problem – power. Indian economy – still be 2nd fastest in the world at the rate of 7-8%

Slide 4: 

Recession – when GDP growth will negative for a period of two or more consecutive quarters. GDP(Gross Domestic Product) = C + I + G + (X-M) C - Private consumption I - Gross Investment G - Government Spending X - Exports M - Imports

Positive Impacts on Indian Economy : 

Positive Impacts on Indian Economy As compared to foreign companies,Indian companies get strong base with, Emergence of a new economy - Expose of weaknesses in the economy - Cost stabilization in real estate market - Rationalization of salary structure in IT Industry - Performance Appraisal is gaining ground - Best place for outsourcing - Opportunities for International trade

Negative impacts on Indian Economy : 

Negative impacts on Indian Economy Agriculture:- Lack of extension of institutional credit,and growing inability to meets debt service payment - price increase and the consumption demand low.

Slide 7: 

Income and Growth Increases per capita income But it reduces, Exports of manufactures and reversal of capital flows. Manufacturing Industries growth such as Textiles garments,Chemical Industries,Leather and Small Scale Business Units. Today most of the employees are very poorly piece-rate workers.Their wage rate is reduced.

Recommendations : 

Recommendations Agriculture & manufacturing Industries are important for the increase of the National Income. So,The policy maker of the country may follow the recommendations below for reducing financial crunch. Domestic liquidity and interest rates Permitting higher level FDI (foreign direct investment)

Slide 9: 

Contd…: Promote agriculture loans and create more facilities to farmers. Monitor & control IT Industry and Real Estate. Provide high subsidies to SSI. Speedy release of Govt.funds for timely implementation of effective projects. This above recommendations should act to faster growth in short-term and lay strong foundation in long term economic stability.

Conclusion : 

Conclusion To conclude, lets hope for a stronger India by rectifying all its economic weaknesses through adopting effective plans.

THANK YOU : 

THANK YOU

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