The Economy in India: Recessionary Effect Essay

Kumar (1996) compares trends/fluctuations in key macro-economic variables in India pre and post 1991, both before and after initiation of new Indian economic policy in '91. These reforms included, amongst other things, the opening up of the Indian economy for international trade (prior to this India was a socialist state not involved in these markets) plus investment and heavy de-regulation processes. These particular changes to this policy allow for great insight into the impact of de-regulated, international capital trade on previously effective macro-management. He observes that this new economic policy increased economic instability which facilitates speculative activity, particularly resulting from financial sector liberalisation and the opening up of the economy. He adds that the observed increased volatility in economic fluctuations is a result from state intervention under these new economic policies that have reduced policy effectiveness. To quote: "The NEP not only lay greater stress on market forces but on opening up of the economy to foreign capital. This imposes constraints on policies since government cannot control the external environment which is governed by international finance capital- a force far more powerful than the Indian state hence able to dictate to it". He argues that since the interest of

Just after ten years of Asian financial crisis, another major financial crisis now concern for all developed and some developing countries is “Global Financial Crisis 2008.” It is beginning with the bankruptcy of Lehman Brothers on Sunday, September 14, 2008 and spread like a flood. At first U.S banking sector fall in a great liquidity crisis and simultaneously around the world stock markets have fallen, large financial institutions have collapsed or been bought out, and governments in even the wealthiest nations have had to come up with rescue packages to bail out their financial systems. (Global issue)

When India got independence in 1947, India inherited a shattered economy. The economy was completely damaged. This damage was largely done by the exploitative policies adopted by the

State and Central Governments in India and the size of the world market : all these

The Constitution declares India to be a sovereign, socialist, secular, democratic republic, assuring its citizens of justice, equality, and liberty, and endeavours to promote fraternity among them. India is diverse in terms of her ethnicity, geography, languages, religions, architecture, dance, music, cuisines, wealth, castes, class, colour, skills, culture, life style etc. The pillar of any healthy society such as general well being of an individual, accountability, impunity, human rights are compromised at the large extent in lower start of Indian society. Indian formal job market is divided into two mainstreams such as Government sector and Corporate sector. Both of them are driven by bureaucracy which is largely Castes bound. The very purpose of Max Weber behind bureaucracy theory is to maximize the governance and to achieve the organizational goals.

A moment comes, which comes but rarely in history, when we step out from the old to the new, when an age ends, and when the soul of a nation, long suppressed, finds utterance. 1.1 These are the words of Pandit Jawaharlal Nehru, the first Prime Minister of India, in his speech marking the Independence of India on 14 August 1947. These words still hold true today as India moves onto the global scene and is making its presence felt as an emerging economic power.

There is an extensive literature written on the Global Financial Crisis of 2007 to 2009. The paper that is currently being researched on focuses directly on evidence from India with the emphasis on the

Even though there was little effect on the Indian financial and banking sector because of their limited exposure to troubled assets, prudent policies of RBI and low presence of foreign banks in the Indian market, there was a change in the market condition following the collapse of Lehman Brothers. With regards to the crisis, India saw a reversal of capital inflows due to heavy sell off by Foreign Institutional Investors which in turn made a downward impact on the domestic stock market. This reason coupled with limited access to other external funds exerted tremendous pressure on the FX market since the dollar liquidity was hampered. The chain reaction followed after this and the

In March 1998, as a result of election, BJP won the election and the president of India gave the party opportunity to control India’s government (Perkovich 1999). Therefore, BJP were able to carry out policies on behalf of the government.

There are different political issues in Indian politics. Some are national level and some regional level.

Going by logic, financial pundits believe the Indian and the American Economy will witness the following economical changes in 2017.

In 2008 the economies worldwide experienced arguably the worst economic meltdown leading to a three year long global recession. This incident was named ‘sub-prime crisis’ as it was basically induced by a huge quantum of sub-prime loans going bad in the US. The effects of the crisis were seen on almost all economies of the world however India had potentially some strengths that made it immune to the crisis to some extent. These were financially sound and well capitalised banking sector among others. However the inflation ever since has been high in the economy. In 2008-09 growth significantly sled from its figures in the past few years coming down at 6.7 percent.

The main causes of the crisis was 1) currency overvaluation,2) the current account deficit, and the confidence of investors played a significant role in the sharp exchange rate depreciation/devaluation. The economic crisis was primarily due to the large and growing fiscal imbalances over 1980-1985... During 1985-1886, India started to have balance of payments problems. Precipitated by the Gulf War, India’s oil import bill increased, exports decreased, credit dried up, and investors that had invested their money in India took their money out. Large fiscal deficits, over the time, had a huge spill over effect on the trade deficit, culminating in an external payments crisis. By the end of the 90’s, India was in deep economic trouble. The gross fiscal deficit of the

On 15th august ,1947 when the transfer of power took place , we became the masters of our own destiny but scars that British policies had left on our economic , social and political life were still afresh and we would be haunted by those wounds long after we got independence. The transfer of power was not a single day event but a slow transition whose repercussions were to be felt long after. While India was reeling under large scale migration and communal riots across the countries, a very important and fierce debate among political and business leaders regarding economic future of India was also in process. It was undoubtedly a hard time for our leaders and they acted in larger interest of people of our country. The

According to RBI’s Report on the trend and progress of banking, the Non-performing Assets (NPA’s) in India for 2008-09 for Indian Banks in 2008 have stood at—