The impact of global economic recession on selected indian industries

Abstract

The devastating tornado named 'Global Economic Recession'  which emerged from U.S. subprime crisis in the end of 2007  engulfed almost all of the world economies in the year 2008-  2009. This financial market turmoil led to an unprecedented  collapse of major financial institutions, plummeting equity  market, currency devaluation, contraction in investment  activities and decline in gross domestic product along with the  soaring unemployment rate worldwide. This global down-  trend in economic cycles not only doomed U.S., its epicenter,  but also transmitted strong tremors to so many other  economies of the world. Whereas there is no commonly  accepted definition of a global recession, International  Monetary Fund regards 'the period when global growth is less  than 3% to be global recession' which generally lasts as a cycle  between 8 and 10 years. According to World Bank Report the  world output growth rate in current recession shrank to mere  0.9 percent in comparison to already receding growth rate of  2.5 percent in 2008 from 4 percent in 2007.