Indian economy and how it has managed the global crisis
Summary :
Table of Contents
- Abstract
- Introduction
- Meaning of recession
- Causes of economic recession
- History of economic recession
- Impact of global recession on Indian economy
- Textile industry
- Steel industry
- Cement industry
- FMCG companies
- Realty sector
- Banking and mutual funds sector
- Conclusion
- References
Abstract
The above quotation by Robert Shan exactly describes the reason of current global financial crisis. The current global financial crises are the cause of defaults on sub-prime mortgages in US. Sub-prime is a high risk debt offered to people with poor credit worthiness or unstable incomes. Major Banks is US have landed in trouble after people could not repay the loans. Many banks have turned to be defaulter. After the case of Lehman Brothers, Merrill Lynch and other American banks, the banks of other countries are also facing the default risk.
Because of the sub-prime mortgage, the housing market soared. The realty sector boomed but could not sustain for long, and it collapsed because of the loan defaults. This situation spreaded like wild fire and put the US economy in danger. This coupled with rising oil prices and slowed down the growth of the economy.
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