National Conference
On
GLOBAL MELTDOWN
Issues, challenges& strategies
At
Institute of Management & Technology, Faridabad
Economic Recession in India and
Survival strategies
(Technical Session III)
Kavita Verma
DAV Centenary College,
Faridabad
Verma_ruby123@rediffmail.com
OBJECTIVES OF THE STUDY
To study the impact of recession on Indian economy
I.Positive Impact
II.Negative Impact
To study the survival strategies for
1.Individual
2.Investor
3.Employee
4.Employer
THE RECESSION
India is facing the position of recession as globalization showing its negative scenario. As
it was started in US and now its touching the boundary of India also. Recession is a phase
in which rupee depreciate, cash crunches, money market slowdown, inflation comes. All in
all its become difficult to bring money from the pocket of an individual.
As we know price of the steel, iron goes up, we would like to postpone our purchasing but
if we wont spend, how producer could makes his bread. If the producer starts reducing the
price of the commodity with such belief that customer buy the product in all case. This will
bring only when he starts cutting its cost of production. Cost cutting means reduction in
variable cost. As price of steel, iron, equipments, machinery, are touching sky, only way to
reduce the cost is the reduction in employees. Hence people fear of their job security.
In fear of the job security, people are generally shifting their purchasing.
All of them either producer, investor, customer, employee posing each other to create
recession
Negative Aspect of Recession on Indian Economy
As recession have various negative effects on Indian economy. The capital market was
facing the downfall, liquidity is dropping down, an individual dont have money to spend,
producers are increasing their price, but to cope with market they are creating deployment.
Positive effect of recession on Indian economy
The recession in US led to decrease in demand of products, reduces the price of crude oil.
Foreign investors who were not able to find a good return, facing Indian like country, so
foreign currency is coming.
SURVIVAL STRATEGIES
Government step:
Government of India can took various steps to bear the pressure of recession. The RBI by
reducing the cash reserve ratio can float the money in market, so the liquidity crisis can be
faced. And also it can remove burden of VAT on the business class. The government on Jan
5 released Rs. 800 crore to be paid to exporters as duty drawback. If government under its
some scheme allows people to convert their black money into white money through
investment will also help in boosting liquidity solution.
Survival strategies for an Individual
An individual when faces recession time, finds him unable to do anything. But an
