Recent Recession

IMPACT OF RECENT RECESSION ON INDIA AND US.
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1) INTRODUCTION
Recession is the result of reduction in the demand of products in the

global market. Recession can also be associated with falling prices known as
deflation due to lack of demand for products. Again, it could be the result of
inflation or a combination of increasing prices and stagnant economic
growth in the economy.
Recession in the West, in 2008 especially the United States, is very
bad news for our country. The companies in India have most of out sourcing
coming from the United States. When our exports to United States increased
over the past years, exports for January declined by 22%. There is a decline
in the employment market due to the recession in the West. There has been a
significant drop in the new hiring which is a cause of great concern for
United States. Some companies have laid off their employees and there have
been cut in promotion, compensation and perks of the employees.
Companies in the private sector and government sector are hesitant to take
up new projects. And they are working on existing projects only. Projections
indicate that up to 1 crore persons could lose their jobs in the current Fiscal
year ending March. The 1 crore figure has been compiled by the Federation
of Indian Export Organization [FIEO], which says that it has carried out an
intensive survey. The Textile, Garment and Handicraft Industry are worse
affected. Together they are going to lose 4 million jobs by April 2009
according to the Federation of India Export Organization [FIEO]. There has
also been a decline in the tourist inflow lately. The real estate has also a
problem of tight liquidity situation, where the developers are finding it hard
to raise finances.
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IMPACT OF RECENT RECESSION ON INDIA AND US. Page│ 2
IT Industries, Financial sector, Real Estate Owners, Car Industry,

Investment Banking and Other Industries as well are confronting heavy
losses due to fall down of global economy. Federation of Indian Chambers
of Commerce and Industry [FICCI] found that with the global recession,
inventories industry like Garments, Gems, Textile, Chemicals and Jeweler
have cut production 10% to 50%.
1.1) Definition:
Recession is not to be confused with depression.

Recession means a slowdown or slump or temporary collapse of business
activity. In its early stage it can be controlled in a methodical matter.
Experience helps to avert total collapse. Unchecked, it leads to serve
depression. Depression is the dead end. It is the time to close shop
completely. It is a total state of irrevocable economics failure. When a
country is doing well as round its Gross Domestic Product [GDP] is on the
rise.
Overall economy is bullish; it is not only the stock exchange that tells
riches to rags stories but even small businesses. It all adds to the burden on
the National Exchequer. An economist may give a detailed, comprehensive
definition of recession. But for the Layman who has been affected knows it
only when he loses his job and has no money to pay his credit and loans.
Recession is when the customer faces foreclosure and the banker comes
knocking for recovery of his loan. Many companies and even countries go
bankrupt for want of liquid funds and cash flow for even daily requirement.
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A recent news in the Economic Times says that the Govt. of U.K. has
decided to mortgage its reserves in order to face the acute recession.
It you look at it from the point of view of a businessman, recession is
a transitory phase. The Business cycle dating committee of the National
Bureau of Economic Research [NBER] has another definition. It profiles the
business that has peaked with their activity in one reason and fall naturally
in the next season. It regains its original position with new products or sales
and continues to expand. This revival makes the recession a mild phase that
large companies can tolerate. As the fiscal position improves there is no
reason to worry. Recession can last up to a year. But when it happens year
after year then it is serious.
1.2) Are we facing recession or not:

Yes, for the simple reason that not only our neighbors but our friends
are unemployed. There is less of business talk and more billing worries.
Transitory recession is good for the economy, as it trends to stabilize
companies to slow down and take stock. There is a saying, ‘when it’s tough
the tough get going and going’. The weaker companies will not survive the
brief recession also. Stronger companies will pull through then resources.
Then is it time to worry? When you are facing a foreclosure, when the chips
are down and creditors file cases of recovery.
Firms face closures when they go through recession and are not able
to recover from losses. If, at this time, they are not able to sustain their
prices and stocks then there is more trouble. Even when the recession
periods get over, they will not be able to do well. If a business survives a
recession period they should be able to survive a depression. But how many
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recession proof businesses are there who will eventually survive the
recession?
1). those that have been able to save their funds.
2). those who have not invested in fly-by-night companies.
3). those who remain calm till the storm passes.
4). those that trade stock immediately and decide to reinvest in a
Recession proof business.
1.3) Identifying recession:

In a 1975 New York Times article, economic statistician Julius
Shiskin suggested several Rules of Thumb to identify a recession; these
included the rule of two successive quarterly declines in GDP [Gross
Domestic Product]. Over time, the other rules have been largely forgotten,
and a recession is now often identified as the reduction in a country’s GDP
[Gross Domestic Product] or [negative real economics growth] for at least
two quarters. Some economists prefer a more robust definition of a 1.5% rise
in unemployment with in 12 month.
In the United States the business cycle dating committee of the
National Bureau of Economic Research [NBER] is generally seen as the
authority for dating US recession. The National Bureau of Economic
Research [NBER] defines on economics recession as ,”a significant decline
in the economics activity spread across the country, lasting more than a few
months, normally visible in real GDP [Gross Domestic Product] growth,
Real Personal Income, Employment [non-farm payrolls], Industrial
Production, and Wholesale-Retail sales”. Almost universally academic
economists, policy makers, and businessmen defer to the determination by
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the National Bureau of Economics Research [NBER] for the precise dating
of a recession onset and end.
1.4) Causes of recession:

a) Currency Crisis:
A currency crisis which is also called a BOP [Balance of
Payment], occurs when the value of a currency quickly, under mining its
ability to serve as a medium of exchange or a store of value. It is a type of
financial crisis. Currency crisis can be especially destructive to small open
economic or bigger, but not sufficiently stable ones. Government often taken
on the role of fending of such attacks by satisfying the excess demand for a
given currency crisis using the country’s own currency reserves or its
foreign reserves.
As are accompanied with speculative attack on the country and at the
time of attack the currency is under the final exchange rate region.
b) Energy crisis:
` An energy crisis is any great bottleneck in the supply of energy
resources to an economy. It usually refers to the shortage of oil and
additionally to electricity or other natural resource.
An energy crisis may be referred to as an oil crisis, petroleum crisis,
energy shortage, or electricity crisis.
c) War:
War is a reciprocated, armed conflict between two or more non-
congruous entities, aimed to reorganizing a subjectively designed, geo-
politically desired result. War is an interaction in which two or more
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opposing forces haves a struggle of wills. War is not necessarily considered

to be the same as occupation, murder or genocide because of the reciprocal
nature of the violent struggle and the organized nature of the units involved.
War is limited to the human species engaged in massive conflicts which
might be termed warfare and chimpanzee pads will engage each other in
tribe like warfare.
d) Under consumption
In under consumption theory, recession and stagnation arise due
to inadequate consumer demand relative to the amount produced. It is an old
concept in economics, going back to Thomas Maithus it not earlier, the
concept of under consumption has been US ed repeatedly as part of the
criticism of say’s law until under consumption theory was largely replaced
by Keynesian economics which points to a more explanation of the failure of
aggregate demand to attain potential output i.e. the level of production
corresponding to full employment.
e) Overproduction:
In economics over production refers to excess of supply over
demand of products being offered to the market. This leads to lower prices
and unsold goods. Over production is the accumulation of unsolvable
inventories in the hands of business.
f) Financial Crisis:
The term financial crisis is applied broadly to a variety of
situation s where some financial institutions or assets suddenly lose a large
part of their values. In the 19 and 20th century many financial crisis were
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associated with banking prices and many secession coincided with these
panics. Other situation that is often called financial included stock market
crashes and busting of other financial bubbles, currency crisis and sovereign
defaults.
1.5) Effect of recession:

a) Bankruptcies:
Bankruptcy is a legally declared inability or impairment of an individual or
organization to pay his creditors. Creditors may file a bankruptcy application
against a debtor in an effort to recoup a portion of what they are owned or
initiate a restructuring. In the majority of cases, however, bankruptcy is
initiated by the debtor.
b) Credit Crunches:
A credit crunches is a reduction in the general availability of
loans or sudden lightering of the condition required to obtain it loan from the
banks. A credit crunch generally involves reduction in the availability of
credit independent of a rise in official interest rates. Many times a credit
crunch is accompanied by a flight to quality by lender and investors, as they
seek less risky investments.
c) Deflation:
In economics deflation is a decrease in the general price level of
goods and service. Deflation occurs when the inflation rate falls below or
resulting in an increase in the real value of money allowing one to buy more
goods with the same amount of money. Deflation is also linked with
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recession and with great depression historically not all episodes of deflation
correspond with periods of poor economic growth.
d) Foreclosure:
Foreclosure is the legal and professional proceeding

in which a mortgagee or other lien holder usually a lender obtains a court
ordered terminations of a mortgagor’s equitable right of redemption while
this equitable right exist the lender cannot be sure that it can successfully
repossess the properly, thus the lender seeks to foreclosure the equitable
right to redemption.
e) Unemployment:
Unemployment occurs when a person is available to work and
seeking work but currently without work. The prevalence of unemployment
is usually measured using the unemployment rate, which is defined is the
percentage of the in the labor force who are unemployment rate is also used
in economics studies and economic indices such as the US [United States]
conference bards index of leading indicators as a measure of the state of the
macro economics.
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1.6) Stock market and Recession:
Some recessions have been anticipated by stock market

declines. In stock for the long run, Siegel mentions that since 1948, ten
recessions were preceded by a stock market decline, by a lead time of 0 to
13 months [average 5.7 million], while ten stock market declines of greater
than 10% in the DJIA [Dows Jones Indus trial Average] were not followed
by a recession.
The real-estate market also usally weaknes before a recession.
However real-estate declines can last much longer than recession.
Since the business cycle is very hard to predict, Siegel argues that it is
not possible to take advantage of economic cycles for timing the
investments. Even National Bureau of Economic Research [NBER] takes a
few months to determine if a peak or through has occurred in the US [United
States].
During an economic decline, high yield stocks such as fast moving
consumer goods, pharmaceuticals, and tobacco tend to hold up better.
However when the economy starts to recover and the bottom of the market
has passed growth stocks tend to recover faster. There is significant
disagreement about how health care and utilities tend to recover.
Diversifying one’s portfolio into international stocks may provide some
safety, however economics that of the US [United States [may also be
affected by a recession in the US [United States].
There is a view termed as the Halfway Rule according to which
investors start discounting an economic recovery about halfway through a
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recession. In the 16 US recessions since 1919, the average length recession

has been shorter. Thus if the 2008 recession followed the average, the
downturn in the stock market would have bottomed November 2008.
1.7) Recession and Politics:

Generally an administration gets credit or blame for the state of the
economy during its time. This has caused disagreement about when a
recession actually started. In an economic cycle a downturn can be
considered a consequence of an expansion reaching an unsustainable state
and is corrected by a brief decline. Thus it is not easy to isolate the causes of
specific phases of the cycle.
The 1981 recession is thought to have been caused by the tight money
policy adopted by Paul Volker, Chairman of the Federal Reserve Board,
before Ronald Reagan took office. Reagan supported that policy economist
Walter Heller, Chairman of the Council of Economic Advisers in the 1960s,
said that “I call it a Reagan Volcker Carter recession. The resulting taming
of inflation did, however, set the stage for a robust growth period during
Reagan’s administration.
It I generally assumed that government activity has some influence
over the presence or degree of a recession. Economists usually teach that
some degree of recessions is unavoidable, and its causes are not well
understood. Consequently, modern government administration attempts to
take steps to harness recession also not agreed upon. They are often
unsuccessful, at least at preventing a recession, and it is difficult to establish
whether they actually made it less severe or longer lasting.
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1.8) History of recession:

There is no commonly accepted definition of global recession; IMF
[International Monetary Fund] regards periods when global growth is less
than 3% to be global recession. The IMF [International Monetary Fund]
estimates that global recession seems to occur over a cycle lasting between 8
and 10 years. During what the IMF [International Monetary Fund] terms the
past three decades, Per Capita global output growth was zero or negative.
Economists at the IMF [International Monetary Fund] state that a
global recession would take a slowdown in global growth to three percent
[%] or less. By this measure, three periods since 1985 qualify: 1990-1993,
1998, and 2001-2002.
According to economists, since 1854, the US [United States] has
encountered 32 cycles of expansions and contraction, with an average of 17
months of contraction and 38 months of expansion. However, since 1980
there have been only 8 periods of negative economic growth over one Fiscal
Quarter or more, and 4 periods considered as recession:
• January-July 1980 and July 1981- November 1982; 2 year totals.
• July 1990-March 1991 8 months.
• March 2001-November 2001: 8 months.
• December 2007- current 15 months as of March 2009.
From 1991 to 2000, the US [United States] experienced 37 quarters of
economic expansion, the longest period of expansion on record.
For the past three recessions, the National Bureau of Economic Research
[NBER] decision has approximately conformed to the definition. Involving
two consecutive quarters of decline, it was preceded by 2Q [Two Quarters]
of alternating decline and weak growth.
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2) RECESSION IN US AND OTHER COUNTRIES.
Official economic data shows that a substantial number of nations

are in recession as of early 2009. The US [United States] entered a recession
at the end of 2007 and 2008 and many other nations followed suit.
The US [United States] housing market correction [a consequence of
US housing bubbles] and sub prime mortgage crisis has significantly
contributed to a recession.
The 2008-2009 recessions is seeing private consumption fall for first
time in nearly 20 years. This indicates the depth and severity of the current
recession with consumer confidence so low; recovery will take a long time.
Consumers in the US [United States] have been hard hit by the current
recession, with the value of their house dropping and their pension saving
decimated on the stock market. Not only have consumers watched their
wealth being eroded them now fear to lose their jobs as unemployment rises.
United States employers shed 63,000 jobs in February 2008, the
most in five years. Former Federal Reserve chairman Alan Greenspan said
on April 6, 2008 that ‘there is more than 50% chance the United States could
go into recession”. On October 1, 2008 the Bureau of Economic Analysis
reported that an additional 156,000 jobs had been lost in September 2008
were declared by Moody’s to be in recession. In November 2008 employers
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eliminated 533,000 jobs, the largest single month loss in 34 years. For 2008,
an estimated 2.6 million US jobs were eliminated.
Although the US economy grow in the first quarter by 1% by June
2008 some analysts stated that due to a protracted credit crisis and “rampant
inflation in commodities such as Oil, Food and Steel; the country was
nonetheless in a recession. The 3Q [Third Quarter] of 2008 brought on a
GDP {Gross Domestic Product] retraction of 0.5% the biggest decline in
2001. The 6.4% decline in spending during Q3 [Third Quarter] on non-
durable goods, like clothing and food, was the largest since 1950. A
November 17, 2008 report from the Federal Reserve Bank of Philadelphia
based on the survey of 51 forecasters suggested that the recession started in
April 2008 and will last 14 months. They project real GDP [Gross Domestic
Product] declining at an annual rate of 2.9% in the Q4 of 2009. These
forecasts represent significant downward revisions from the forecasts of
three month ago.
A December 1, 2008, report from the National Bureau of Economic
Research [NBER] stated that the United States has been in a state of
recession since December 2007 [when economic activity peaked], based on
a number of measures including job losses, declines in personal income, and
decline in real GDP [Gross Domestic Product].
A few other countries have seen the rate of growth of GDP [Gross
Domestic Product] decrease, generally attributed to reduced liquidity sector
price inflation in good and energy, and the US slowdown. These include the
United Kingdom, Canada, Japan, Australia, China, New Zealand and the
Euro zone. In some, the recession has already been confirmed by experts,
while others are still waiting for the Q4 [Fourth Quarter] GDP [Gross
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Domestic Product] growth data to show two consecutive quarters of negative

growth.
India along with China is experiencing an economic slowdown but not a
recession.
2.1) Past recession in the US:

The United States economy has suffered 10 recessions since the End
of World War II. The great depression in the United States was an economic
slowdown, from 1930 to 1939. It was a decade of high unemployment, low
profits, low prices of goods, and high poverty.
The trade market was brought to a standstill, which consequently
affected the world markets in the 1930s. Industries that suffered the most
included Agriculture, Mining and Logging.
In 1937, the America economy unexpected fell, tasting through most
of 1938. Production declined sharply, as did profits and employment.
Unemployment jumped from 14.3% in 1937 to 19.0%.
The United States saw a recession during 1982-83 due to a tight
Monetary Policy to control inflation and sharp correction to overproduction
of the previous decade. This was followed by Black Monday in October
1987, when a stock market collapse saw the Dow Jones Indus trial Average
plunge by 22.6% affecting the lives of millions of Americans.
The early 1990s saw a collapse of junk bonds and a financial crisis.
The United States saw one of its biggest recessions in 2001, ending ten years
of growth, the longest expansion on record.
From March to November 2001, employment dropped by almost 1.7
million. In the 1990-91 recessions the GDP [Gross Domestic Product] fell to
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1.5% from its peak in the second quarter of 1990. The 2001 recession saw a
0.6% decline from the peak in the Q4 [Quarter Fourth] of 2000.
The dot-com burst hit the US economy and developing countries as
well. The economy also suffered after the 9/11 attacks. In 2001, investor’s
wealth dwindled as technology stock prices crashed.
2.2) Current crisis in the US:
The defaults on sub prime mortgages [home loan

defaults] have led to a major crisis in the US. Sub prime is a higher risk debt
offered to people with poor credit worthiness or unstable incomes. Majors
banks have landed in trouble people could not pay back loans.
The housing market soared on the back of easy availability of loans.
The reality sector boomed but could not sustain the momentum for long, and
it collapsed under the gargantuan weight of crippling loan defaults.
Foreclosures spread like wildfire putting US economy on shaky growth.
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3) IMPACT OF AMERICAN RECESSION ON INDIA.
Indian companies have major outsourcing deals from the United

States. Indians exports to the US have also grown substantially over the lose
between 1 to 2 percentage points in GDP [Gross Domestic Product] growth
in the next Fiscal year. Indian companies with big tickets deals in the US
would see their profit margins shrinking.
The worries for exporters will grow as rupee strengthens further
against the dollar. But experts note that the long-term prospects for India are
stable. A weak dollar could bring more foreign money to Indian markets. Oil
may get cheaper brining down inflation. A recession could bring down oil
price to $70 per barrel.
The whole of Asia would be hit by a recession as it depends on the
US economy. Even though domestic demand and diversification of trade in
the Asian region will partly counter any drop in the US demand, one simply
can’t escape a downturn in the world’s largest economy. The US economy
accounts for 30% of the world’s GDP [Gross Domestic Product].
Says Sudip Bandyopandhyay Director and CEO, Reliance Money
“in the globalize world complete decoupling is impossible. But India may
remain relatively less affected by adverse global events, “in fact, many
Small and Medium Companies [SMCs] have already started developing
trade ties with China and European countries toward off big losses.
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Manish Sonthalia, head, equity, Motilal Oswal Securities says if the

US economy contracts much more than anticipated, the whole world’s GDP
[Gross Domestic Product] growth which is estimated at 3.7% by the IMF
[International Monetary Fund] will contract, and India would be no
expectation.
The only silver lining is that the recession will happen slowly,
probably in six months or so. As of now, IT and IT-enabled services,
Textiles, Jeweler, Handicraft and Leather segments will suffer loses because
of their trade link certain sections of commodities could face sharp impact
due to the volatile nature of these sectors. C.J. George, Managing Director,
Geojit financial services, says profit of lots of re-export firms may be
affected. Countries like China import commodities from India do some
value-addition and then export them to the US.
The IT sector will be the worst hit as 75% of its revenues come from
the US. Low demand for services may force most Indian fortune 500
companies to slash their IT budgets. Zinnov consulting a research and off
shore advisory, says that besides companies from ITES and BPO automobile
companies will be affected.
During a full recession, WE companies in health care, financial
services and all consumers demand driven firms are likely to cut down on
their spending. Among other sectors, manufacturing and financial
institutions are moderately vulnerable. If the service sector takes a serious
hit, India may have to revise its GDP [Gross Domestics Product] to about 8
to 8.5% or even less
Lokendra Tomar, Senior Vice-President, integrand, a BPO [Business
Process Outsource] firm, says the US recession is likely to have a dual
impact on the outsourcing industry. Appreciating rupee along with poor
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performance of US companies [low firms, investment banks and media

houses] will affect the bottom line of the outsourcing Industry. Small BPO’s
[Business Process Outsource] which are operating at a net margin of 7.8%
will find it difficult to survive.
According to Dharmakirti Joshi, Director and Principal Economist
of CRISIL, along and serve recession will, seriously affect the portfolio and
fixed investment flows. Corporate will suffer from volatility in foreign
exchange rates. The export sector will have to devise new strategies to
enhance productivity.
3.1) Consequences of US recession on India job market:

Worst affected because of United States recession will be the service
industry of India. Under service industries come BPO, KPO, IT, ITETS, etc.
Service industry contributes about 52% to India’s GDP [Gross Domestic
Product] growth. Now if that is going to get hurt then it will also hurt India’s
overall growth but very slightly. India is not going to face a majority impact
due to US recession. People may say that there is going to be a huge job loss
due to recession and will cite the example of TCS [TATA CONSULTANCY
SERVICE] firing about 500 employees but these were employees who
didn’t perform and for cost cutting one have to reduce non performing asset
and that exactly what has been done. There is no threat to the skilled people.
According to NASS company India will have a shortage of about 5 million
skilled people in IT/ITETS.
Apart from this India’s Travel, Tourism and Power industry is going
to grow at a better rate. This is again a good sign. India has a huge
population and a huge consumer base so we don’t have to always depend on
US for our growth. India’s GDP [Gross Domestic Product] is expected to
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grow at the rate of 8.5 - 8.9 which is again way above the growth rate of US
and only second highest in the world after China.
This recession gives United States opportunity to be innovative and
to think out of box so that US directly doesn’t affect our robust growth. Due
to increasing Rupee exporters are having a hard time but it has been noted
that our exporters are not that efficient and in past they got the benefit of
depreciating rupee. So now its time to be innovative and more effective and
increase the over all efficiency and go for systematic cost cutting to balance
the rupee effect. Infact there are lots of scope for improvement. In West
Africa goods at departmental stores are sold at the rate 5 times than Indian
prices and Indian goods are not exported to several countries in West Africa,
it’s an excellent opportunity for our exporters.
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4) RECESSION and INDIAN INDUSTRIES:
In the current global economic slowdown, every

sector of business is being affected and is witnessing a hard time. But IKON
marketing consultants reports that in India there are few sectors which will
grow in this adverse situation.
As every business sector is affected by present global crisis and
everybody is talking of slowdown in business, still in India there are few
sectors will grow in this adverse situation. Let’s have look:
A) FOOD:
No one can survive without basic food material like milk, vegetables
and drinking water. Food processing companies will not be affected much
and rather will earn profits by increasing the prices. These are the basic
needs which we as a common man can not produce by our self.
According to Ministry of Food Processing Industry [MFPI], the food
processing industry in India was seeing growth even as the world was facing
economics recession. According to the Minister, the industry is presently
growing at 14% against six to seven percent growth in 2003-2004. The
Indian food market is estimated of over US $182 billion and accounts for
about two third of the total Indian retail market. Further, the retail food
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sector in India likely to grow from around US $70 billion in 2008 to US $

150 billion by 2025.
B) RAILWAY:
As the aviation sector has been affect much badly and resulting in
sharp rise in the air ticket rates the frequent traveler’s will prefer railways to
cut the cost of traveling and this will result in increased traffic in railway and
long queues at railway booking counters. The freight traffic of Indian
railways has continued to grow in the last few months, albeit at slow pace,
indicating only marginal impact of the global recession on the Indian
economy.
The railway registered 13.87 % growth in revenue to Rs. 57,863.90
crore in the first nine months ended December 31, 2008. While total
earnings from freight increased by 14.53% at Rs. 39,085.22 crore during the
period, passenger revenue earning was up 11.81% at Rs. 16,242.44 crore.
The railways have enhanced freight revenue by increasing its axle loading,
improving customer service and adopting an innovative pricing strategy.
C) PSU BANKS [Public Sector Unit]

As seen in the private sector much of the job cuts due to global
slowdown, its public sector unit [PSU] Banks which against gained much
confidence due to job safety and security. More and more people to turn
onwards government institutions, particularly banks in the quest for safety
and security.
A report “opportunities in Indian Banking sector”, by market
research company, RNCOS [Research and Consultancy Solutions] forecasts
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that the Indian banking sector will grow at a healthy Compound Annual
Growth Rate [CAGR] of around 23.3% till 2011.
D) EDUCATION:
As education is considered as the basic necessity and in India it is
seen as a long term investment by presents and with respect to the demand
still there is a huge supply gap. The craze of study in foreign universities
among the Indian youth still alive which will prompt foreign education
institutes to target India provided vast young population is willing to join.
We will see more and more educational institutions coming up in India in
recent coming years.
Huge government as well as private investment is likely to flow into
the Indian educational system D.E.Shaw, a US $ 36 billion, global private
equity firm is planning to invest around US & 200 million in the Indian
Education sector.
E) TELECOM:
People will not stop to communicate with each other due to global
crisis rather it has been seen that it will increase much particularly with
mobile communication. With cheap cell phones available in the Indian
market and cheaper call rates, the sector has become the necessity and
primary need of everyday life.
Telecom sector, according to industry estimates, year 2008 started
with a subscriber base of 228 million and will likely to end with a subscriber
base of 332 billion a full century. The telecom industry expects to add at
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least another 90 million subscriber in 2009 despites of recession. The Indian

telecommunication industry is one of the fastest growing in the world and
India is projected to become globally by 2010.
F) IT [Information Technology]:
Recent news shows that Indian IT sector will grow 30 to 405 in this
year. And on the other side to survive in current slowdown, industries have
to decrease the cost and for that they will result to customized IT solutions
which will further boost up the software solution demand.
India is fast becoming a hot destination for outsourced e-publishing
work. As per a Confederation of Indian Industry [CII] report, the industry is
growing at an annual rate of 35% and India’s outsourcing opportunities in
the value-added and door service such as copyediting, project management
indexing, media services and content deployment will help make the
publishing BPO [Business Process Outsource] industry worth US $ 1.46
billion by 2010.
G) HEALTH CARE:
India in case of health care facilities stick lakes the adequate supply.
In health care sector also there is huge gap between demand and supply at all
the levels of society. Still there are so many urban areas were you could you
hardly find any multi specially hospital. And in case of metros the market
sentiments itself created a need of psychological consolation.
Health care. This is a US $ 35 billion industry in India, is expected
to reach over US $ 75 billion by 2012 and US $ 150 billion by 2017. The
healthcare industry is interestingly poised as it strives to emerge as a global
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hub due to the distinct advantage it enjoys a clinical excellence and low
costs.
H) LUXURY PRODUCTS:
The high and affluent class of society will not be affected much by
this global crisis even if their worth is reduced significantly. They will not
change their lifestyle and will not stop spending on luxurious goods. So
luxurious products market will not be affected and in fact to maintain the
lifestyle those affluent will spend more for it. Luxury car makers are pouring
in to the nouveau riche [Audi, BMW are the most recent entrant].
I) M&A & MARKETING CONSULTANTS:

As in the current business slowdown survival will be the main focus,
the marketing and management consultants will be called for to reduce the
costs and to show the ways to survive and stay in market. Others may join
hands to flight with this situation together will call for the marketing &
M&A consultants. In a booming market there are growth strategies and
M&A opportunities to advice on when business are caution back,
consultancies will be right there to help clients decide where to wield the
axe.
According to Ministry of Commerce and Industry’s estimation, the
current size of consulting industry in India is about Rs.10, 000 crores
including exports and is expected to grow further at a CAGR of
approximately 25% in next few years.
J) MEDIA AND ENTERTAIMENT:

In current bad news times, where people are losing jobs and getting
enough time to watch TV, they will seek entertainment at home and hence
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advertising revenues will increase for the commercial channels. Also

business like production of religious texts and religious materials, religious
channels will do well. The TRP of religious channels will increase compare
to the other entertaining commercial channel.
5) SMEs: STRENGTH OF INDIAN ECONOMY:
5.1) SMEs:
Like India are in a state of transition. They are striving to be outward
looking global economies rather than inward looking local economies. In a
changed scenario, this can be possible only if Small and Medium scale
Enterprises [SMEs] are adequately bolstered. With more than 13 million
SMEs operating in the country, India can certainly boast of quite a handful.
SMEs [Small and Medium scale Enterprises] are new economics
visionaries fuelling economic growth. They are the leaders who will pioneer
products and jobs and create new exports. As the country swims against the
recessionary tide to stay afloat, it is waking up to the reality that in the
changed scenario, SMEs hold the key to prosperity in THESE recessionary
times, developing country.
• Significant Strides Despite Odds:
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SMEs [Small and Medium Enterprises] have, over the years, made
significant strides through thick and thin and have achieved objectives like
contribution to domestic production, export earning, low investment and
flexibility in operations and also inadequate contribution towards to R&D
[Research and Development].
In spite of these limitations the SMEs [Small and Medium
Enterprises] have made significant contribution towards technological
development and exports.
SMEs [Small and Medium Enterprises] have been established in
almost all major sector in the Indian industry such as food processing,
agricultural inputs, chemical and pharmaceuticals, computer software and so
on.
• Swimming Against Slowdown:

A survey undertaken by the Federation of Indian Chambers of
Commerce and Industry [FICCI] says 94% of the SMEs [Small and Medium
Enterprises] have been “severely to moderate hit” by the economics
slowdown. The survey was conducted among 116 SMEs manufacturing a
diverse range of products from 20 locations across the country, mostly
catering to the export market. Among other factors, rising cost of raw
materials and lack of buyers for product were high lighted as the problematic
areas.
It is estimated that SMEs [Small and Medium Enterprises] account
for almost 90% of industrial unit in India and 40% of value addition in the
manufacturing sector. They contribute 35% to India’s merchandise export.
Towards meeting the National Development objectives of growth rate of
over 8% on a sustained basis, it is imperative for the industrial sector to
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grow at a faster pace supported by a vibrant SMEs sector towards this, the
government’s policy initiative like enactment of the new Micro Small and
Medium Enterprises Development Act [MSMED] 2006.
Their future scope for increasing their export potential market share
in domestic market and then achieving status of serious players in the
“global value chain” access to finance and capital are the key resources for
improved competitiveness and effective operation of SMEs.
• BANK FINANCE To SMEs:

A) BANK OF INDIA:
In recognition of the fact that the MSMEs
[Micro Small and Medium Enterprises] can indeed rejuvenate the economy
in the face of the global economic slowdown, BOI [BANK OF INDIA]
continues to be a pioneer in extending liberal credit to the sector. Te bank’s
lending to MSMEs [Micro Small and Medium Enterprises] sector has grown
from Rs. 11,649 crore as on 31.03.2005 to Rs. 25,443 crore as on
31.03.2009, showing an average annual growth rate.
The bank has achieved these results by
adopting many aggressive measures some of them being
1) Attaching high priority to MSMEs lending while finalizing corporate
credit budgets year after year.
2) Granting adequate lending powers to the line functionaries.
3) Enunciating a liberal and customer centric SMEs policy.
4) Laying down stiff deadline for disposal of credit request received at
branches.
5) The bank has formed 88 clusters in different areas and has extended
credit of about Rs. 1,000 crore.
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B) STATE BANK OF INDIA [Pillar of support since 1956]:

SBI [STATE BANK OF INDIA] has been
playing a vital role in the development of small scale industries since 1956.
SBI USP [Unit Selling Plan] lies in the fact that it is not just a fair weather
bank, but stands by its customers in the up saving as well as the down swing.
To service the specific credit needs of SMEs
[Small and Medium scale Enterprises], SBI establishes the SMEs business
unit in 2004. During the year 2008-2009 advances to MSME sector
increased to Rs. 93,808 crore as on 31.02.2009 from Rs. 74,324 crore as on
31.03.2008, registering a growth of 26.21%. While deposits of SMEs
increased by Rs. 53,042 crore during year 2008-2009.
SBI has two schemes namely ´SMEs care”
and “SMEs help” were launched to meet the urgent fund requirement.
Recently the bank has launched a new loan product called “SBI Micro
Loan” where maximum loan amount will be 5 lakh to meet the requirement
of both working capital and equipment purchase “traders easy loan has been
further simplified the process”.
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5.2) Micro finance:
• Meaning:
Micro finance is the provision of broad range of financial services
such as deposits, loans, payments service, money transfers and insurance to
poor people and low income households and their micro enterprises. It is an
effective tool for making the banking services accessible to the rural
unbaked arrears. Improved access and efficient provision of savings, credit
insurance facilities would enable the poor setup micro enterprise, build up
economic assets, manage the risks better and enhance income earning
capacity and resulting improve their standard of living.
• Small Lenders Beat Big Crisis:
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While big banks blazed with toxic assets in major economies, tiny
tenders in poor villages in the developing world should have crumbled under
pressure. This hardly business is called microfinance, where specialized
lenders borrow money from mainstream financiers like banks to and lend to
poor entrepreneurs without credit histories. This lender called Micro Finance
Institutions [MFIs] serves up small, something 100 or lower, to borrowers
who are excluded from the formal banking system. This is a far cry from sub
prime borrowers who borrowed too much without the means to pay back.
Financing the needs of this “bottom billion” eager to step out the
poverty trap caught the imagination of commercial investors over the last
decade. While about 100 million borrowers crowed the sector, 80% of whom
are served by only 20% of the MFIs [Micro Financing Institutions], this is
only a length of the total number of potential borrowers.
From near 30 years ago, microfinance lending hit nearly $14 billion
in 2007. The founders range from large public and private sector donors to
commercial investors. Leading up to the financial crash in 2008, funding
glutted the market as too much capital chased too few top tier MFIs [Micro
Finance Institutions]. Both domestic and international capital markets vied
to lead to MFIs, who played them off against each other for lowest priced
and largest loans. But as soon as the crisis hit investors were quick to turn
off the tap.
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• Micro Financing In India Needs Technology Shift:

To overcome the shortcoming a technology based model using
straight through processing is evolved by Sukkaki Foundation.
India is a country of villages even today but an account of lack of
infrastructure resulting in lack of opportunities for the population migration
of youth continues unabated. The urban centers are getting flooded with
masses. To step this migration we have to private opportunities to under
privileged people of rural areas. Micro finance is a major tool available to
create opportunities and help people to raise their quality of life. Although
this fact is well establishes and understood the approach taken to achieve is
yet to prove itself and hence despite huge money mode available for these
projects success is nowhere visible. The business correspondent and
business facilitator model envisioned by RBI [Reserve Bank of India] and
commercial banks needs majors revamp.
• Micro finance: Impact On Indian Market:

Industry estimates peg the reach of MFIs [Micro Finance
Institutions] at over 50 million individual customers.
Micro finance, which includes a wide variety of financial service
such as Micro-Remittance, Micro-Saving, Micro-Credit, Micro-Pension, and
Micro-Insurance, has seen substantial growth in India in the last few years.
Industry estimates pay the reach of MFIs [Micro Finance Institutions] at
over 50 million individual customers, the vast majority of which are serviced
and governed through the Self-Help Group [SHG] model
While the reason that MFIs originally started business was to
address the unorganized money lending business, the overall intention was
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to enable the poor to get out of their debt traps from local money lender by
providing credit for income generating activities, in addition to services that
would allow a safety net for their families, such as micro-insurance.
Micro finance has impacted not only the rural and urban poor, but
also a number of business units that serve this target segment such as in
A) Financial inclusion
B) Provision of high growth markets for industry.
C) Rural employment.
D) Creation of micro-entrepreneurs.
E) Education.
While the sustainability v/s outreach challenges still exists when it
comes to reaching out to people in remote arrears, or it people with low
economic and social status , technology is continuously evolving, and is
available to circumvent and/or address these challenges and enable MFIs
[Micro Finance Institutions] to further their positive impact on society.
• Recession Has Not Affected US As We Depend More On

Domestic PSU’s:
“Evangelical Social Action Forum [ESAF] was established in 1992
as a Christian response to the social and economics needs of people. ESAF
[Evangelical Social Action Forum] stands for sustainable holistic
transformation of the poor and marginalized for a just t and society. K.Paul
Thomas, Managing Director of ESAF micro finance and investment shares
his thoughts with Finance enterprises”
P.T.O
(Interview with a Que. & Ans)

1) What service does MFIs provide to reduce poverty and how?
Ans. From the ESAF [Evangelical Social Action Forum] point of view we
organize poor people into group and sangams to identify their problems in
an efficient manner. We give them loans for income generation and
consumption and encourage their saving habit through their sangam an apex
federation. The positive economics features thus entertain social
development. They also provide them business development service by
imparting entrepreneurship training and giving them marketing support
through their retail outlets.
2) How can MFIs be made more affordable to the poor?

Ans. The interest rate can be reduced in outreach. More outreach means
more business volume. In another way, interest rates can be reduced if the
government allows the MFIs to accept deposits from their borrower, which
will help them to access low cost funds.
3) What should be the role of the banks in the proper functioning of the
MFIs?
Ans. The commitment of commercial bank to micro leading has been fragile
and not based solidly in its institutional mission. This situation should be
changed of course; the main role of the bank is to provide adequate funds on
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time, to meet the requirement of MFIs [Micro Finance Institutions]. They

should also bring an end reduce the red tapes involved in sanctioning of
loans. Faster procedures help the MFIs to meet the client requirement faster.
4) What is the role of the government in the upliftment of this sector?

Ans. Now the government has accepted the significance of micro finance
through the budget, so it is obligatory for them to pass the micro finance
sector development and regulation bill at the earliest. Through RBI [Reserve
Bank of India], SIDBI and NABARD the government can provide
refinancing and infrastructure support to MFIs.
5) In the context of micro lending what is the scenario now in the wake
of recession?
Ans. In India economy at the grass root level are still vibrant and
MFIs[Micro Finance Institutions] mostly deal with these groups. Hence the
repayments are not affected, but the flow of money into the sector from
international bank got slightly affected due to recession. The fact, that we
depend more on domestic PSU [Public Sector Unit] bank reduced the effect
of recession on MFIs [Micro Finance Institutions].
6) Micro finance is the new buzz in mutual fund industry in India. How
can it set a new dimension to the industry?
Ans. The mutual fund companies can utilize the clientele of Mutual Fund
companies. Apart from that mutual fund providers should come with some
innovative Systematic Investment Plan schemes which are compatible with
the income level of the poor. This allows the poor to enjoy the advantages of
investing in capital market.
7) What should be the guidelines for the functioning of MFIs?
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Ans: At present Microfinance non banking financial companies are working

under the guidance of RBI [Reserve Bank of India]. Saadhan- an association
of MFIs in India has published a code of conduct for its member MFIs. But
NGO [Non Government Organization], MFI [Micro Finance Institution] are
not regulatory authorities. So it is important that micro finance regulatory
bill, which is hanging fire from 2007, should passes at the earliest. All MFIs
should be regulated by this Bill.
8) How can financial inclusion help in the empowerment of women?
Ans. The best possible way to expand the efforts of financial inclusion is
through the empowerment of women. When a woman starts earning
independently they can improve the well-being of their household and
educate the children. Moreover Self Help Group boosts their social networks
and community participation.
9) What are your suggestions to the finance ministry to make MFIs
more profitable? Should they be given more tax concessions?
Ans. Of course tax concessions are required to MFIs to make more profits.
Considering the key role played by MFIs to balance the economy interest
subsidies should be provided. Also debt relief schemes applicable to
commercial bank should be made applicable to MFIs as well.
• How Can We Develop Microfinance Sector:

The bank is undertaking the micro financing activity through 2
delivery channels
1} extends the finance to micro finance institutions for onward lending to
Self-Help Groups [SHG].
2} extends credit facilities to the SHG’s for onward lending to their
members.
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The bank has been consistently taking initiatives to develop the

micro finance sector and to expand the outreach and increasing the coverage
under micro finance. During the year 2009-2010 bank has declined to
develop and promote at least 5 Self Help Group [SHG], in each village in the
area of operation and to ensure their credit linkage. Bank is also extending
finance to the micro finance institutions for on lending to SHGs so that their
credit requirements can be fulfilled.
6) RECESSION: AN OPPORTUNITY FOR INDIAN

ECONOMY.
6.1) Global Recession is also an opportunity for India:

The near recession in the United States and the global meltdown of
course, have its impact on India High-Tech Industry, as it is one of the
greatest financial crisis of globalize times. But it also presents an
opportunity for Indian services vendors to improve their market share, while
forcing them to diversify and de-risk across sector and geography.
Lehman Brothers went bankrupt September 15. A day earlier,
Merrill Lynch had announced that Bank of America was acquiring it. A
week earlier, US mortgage giants Freddie Mac and Fannie Mac went into
Federal Receivership. And with each news flash the Indian sensex swung
widely downward, partly in sympathy, partly with foreign funds pulling out
because e they needed the cash. And the jitters echoed in the hallways of a
host of tech service companies who were servicing any of these firms, or
their US based suppliers, this was bad news the Indian and business process
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outsourcing service industry is strongly dependent an North America and

specifically on the sector that we call BFIS [Banking, Finance, Insurance,
and Services].
Accordingly, many of the Indian tech/ BPO [Business Process
Outsource] services exporters looked harder beyond North America, which
used to account for of our services export 3 years ago. They went to Europe
and Asia and an adventure few Indian companies even came to the India
market
Financial services have been the mainstay of Indian software and
BPO services exports. This began to change a few years ago, with telecom
and engineering services picking up. That process has now accelerated.
Telecom is a huge growth market in Asia and especially in India and China.
The United States congress approved a revised $700 billion package to bail
out the US financial sector. This means major opportunity for India based
service companies.
India is not de-linked from the world, and the financial meltdown
has certainly impacted US. While some of the impact is real and direct like
foreign institutional investors pulling out funds, which they needed back
home and thus causing havoc with rupee a lot of it is wild overreaction.
Yet, Indian services vendors have an opportunity waiting. There are
factors in their favor. The dollar has swung very hard in the other direction
now. India brand and regulation of areas, beginning with financial services
but now extending to telecom, engineering services and medicine and more
is on the rise.
Even so, it will mean belt tightening and more focus on efficiency,
just as the fuel crisis and cost is forcing United States towards more efficient
transport. The global financial meltdown will mean some tough tomes for its
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suppliers, but the fittest will survive and emerge stronger and many will find
opportunity in the crisis.
6.2) Branding in Times of Recession:

Over the past few years, brand equity has emerged as a key strategic
asset. CEOs in many industries now see their brands, whether product,
service or corporate, as a source of strategic control and a way to build
stranger with customers.
The importance of the brand as a strategic asset is broadly accepted
and top management agrees to varying degrees depending on the nature of
their industry, that brand equity has to be developed and leveraged strongly
brands are recognized as intangible assets that influence investment
decisions and market capitalization and as leading indicators of future
revenue streams.
When the economy stalls most companies take a closer took at their
physical assets and assess what is critical and what is expendable or can be
deferred. However, they are often not as careful regarding investments
needed to support their intangible assets, including brands, and slash them
perfunctorily, without thinking about the damage that may occur, because e
at these times, these investments are suddenly viewed as deferrable expense
and not as investment.
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Yet, when there is an economic downturn brand support is amongst

the first to face a cut. Companies surrender painstakingly built brand equity
by laying off customer service personnel a terrible decision determinate in
the long term. After all while customer value is realized value the potential
for future value generation lies in brand equity and its stability in customer
relationship.
In a downturn, understanding customer is even more critical. Instead
of cutting the market research budget protect the budget and preserve the
longer term projects concerning innovation and trends. We must known
where our customers are going over through the downturn in a better
competitive position. Most immediately we need to know how customers are
redefining value as price elasticity curves changes. Customers search and
negotiate harder for durable goods. They are more willing to postpone
purchases, trade down or buy less. Many are shifting down the “no frills”.
New product launches under the aegis of a trusted brand often soon are more
likely to succeed because e interest in new brands and new categories wanes,
as risk invernesses dominates.
6.3) Winning In Turbulent Times:

• An Unprecedented Global Crisis:
March 16, 2008 Bear Stearns is acquired for 2 dollars a share against
its 52 weeks high of 134 dollars a share. July 14, 2008 oil hits 145 dollars a
barrel and then collapses to34 dollars with in 6 months. September 15, 2008
collapse of Lehman Brothers. November 20, 2008 Dow Jones at a record
low of 7449 points. June 1, 2009, General Motors files for bankruptcy. We
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are living in a time that seen unprecedented volatility. From boom to bust in
a matters of month.
• The India Impact:
While the crisis began with the US housing market, the ferocity and
speed with which it has appeared around the world and even into India has
surprised everyone. As the governor of the RBI DR. D.Subbaro, pointed out
in a recent speech “contrary to the decoupling hypothesis” emerging
economies too have been hit by the crisis. In a rapidly globalization world
the decoupling hypothesis was never totally persuasive. However it is still
good particularly at a time when many other economies in the west are
actually shrinking.
• Crisis As An Opportunity:
Over the last 100 years or so that unilever has been in existence we
have leveraged these crisis into opportunities and emerged stronger each
other. It sounds simple enough today but to be able to execute this strategy
we had to develop an even sharper understanding of rapidly to these
changing consumer needs and to respond to these changes quickly. Cash
generation and cost saving were key. This was achieved by single mindedly
reducing completely in our operations.
Consumer understanding has always been and will continue to be at
the heart of our business. At a time like this, it is crucial to understand and
respond to changing consumer and shopping behavior.
In the words of Mahatma Gandhi,
“The future depends on what we do in the present” it is precisely
with this inspiration and spirit that we seek to win in these turbulent
times”.
-Harish Manwanl.
P.T.O
(Chairman of HUL at the company’s AGM held on Friday, July 3 2009).
6.4) Steps Taken by Government and RBI:

The Central Bank even cut its benchmark report rate by150 basis
points to 7.5% on October 19, 2008 in an attempt to get some of that money
out of the bank vaults still no go. The RBI recently turned up the thermo
state once more this time to bank to starts lending at reduced interest rates. It
cut its benchmark report and reserve rate by 100 basis points. But again,
there hardly any movement. The bank are still carting their surplus cash over
to the RBI and dumping it there for safe keeping, for even as a low a return
as 5%. Take a look at the money tipped over at the RBI window.
For the first five days of the month, till the RBI cut the rater, banks
plunked Rs.243,310 crore with the RBI for a return only 6% over the next 3
working days, banks again deposited Rs.84,635 crore with Central bank for
a return of just t 5%. The total for just t 8 days works out to over Rs.
327,000 crore.
In effect this means banks are still way of leading to corporate
despite the sea of liquidity and rate cuts unleashed by the central bank.
These also then convey how banks are still uncertain about the future and
that they are about the ability of their corporate clients to pay up in time.
P.T.O
Here’s an example a PSU [Public Sector Unit] was able to issue 5 years
bonds to banks with a coupon of 9.33% around the same time, one of the top
5 India INC companies also borrowed 3 years money. But at 10.10% clearly
cut banks are willing to take a risk and the government, even if it’s a
subsumed severing guarantee, but not an even. Private company’s banks
have not forgotten the nightmares of the early 1990s when bank NPA ruled
around 10.14%. This time despite the prodding forms the government and
the central bank they are unwilling to stick their neck outs. The RBI has
allowed banks to restructure loans a euphemism for looking the other way
when a loan from bad that might in ordering times have been called for
stricter treatment. But the banks are still not biting.
The problem also seems to be in the system liquidity absorption
capacity. Whatever steps the government takes at moment such as providing
cheap cash to corporate through a variety of refinance windows not only are
banks reluctant to lead even corporate are loath to load up their balance
sheets with fresh debt. Many of them are drawing down their existing credit
lines with banks emboldened some what by the new restricting space to
finish existing projects but are unwilling to bet on new projects.
Therefore, the key to the current economic impasse lies on the
demand side. The government has tried addressing the issue by spending on
infrastructure and by cutting taxes to boost demand. There are also not
without their associated problems. Any investment in infrastructure will
yield results only after a long lag, and the nature of improved technology
does not allow for the higher employment generation that one saw few years
ago. Plus to get an infrastructure project started is also time consuming
financial closure in these days of clammy credit markets is a tough call.
P.T.O
Some economists say that the production orientation of the economy

has changed in favor of expensive consumer products a sector that might
slow off the blocks in reviving. In such situation reviving demand for wages
goods might needs to be tested. The occasion might present itself soon with
experts forecasting a better than average winter crop, the government should
facilitate hassle free can be spent. This may sound simplistic, but storing the
physical infrastructural infirmities should be one of the first achievable steps
on the long road to recover.
7) BREAKING NEWS:
7.1) RBI puts trust reserves in foreign bank again:
In what could be another sign of revival of confidence

in the global financial system the RBI has slowly started moving back to
foreign exchange reserves. According to the latest RBI figures, assets
parked with foreign commercial banks rose gradually from $4,729
million in February to $5,092 million in July.
Last year, after the sub prime crisis broke out the central bank had
withdrawn fund sparked with foreign commercial banks and moved them to
safer queues such as other central banks, the Bank for International
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Settlements [BIS] and the international monetary fund. This began

happening much before the collapse of the Lehman Brothers in September
2008 when the rumbling over sub prime loans begins to rail global markets.
Banks of the reserves are invested either in top-rated sovereign
paper or with other central banks the Bank for International Settlements
[BIS] and International Monetary Fund [IMF] as they are considered safe
and liquid queues. Of later the central bank has stated parking a small
portion of its forex assets with foreign commercial banks where the returns
are marginally higher. Explaining its rationale of deploying the forex reserve
RBI in its latest annual report said that as such the foreign currency assets
are invested in multi currency and multi market portfolio decisions involving
the pattern of investment are driven by the broad parameters of portfolio
management namely safety liquidity and returns. It has also acknowledged
that in response to the development in the global financial markets in 2008-
2009, the strategy was suitably adjusted in regard to commercial bank. As
for the recent pick up in exposure with foreign commercial bank an
economist with an American investment bank speaking on condition of
anonymity, said “since the country in which the money is parked in not
made public, it is difficult to acknowledge this as a trend. This is because e
the dollar has bean weakening against major global currencies. If the money
is parked in a Non-US commercial bank a lot of the enhanced exposure that
one is seeing with commercial banks could be a valuation effect.
P.T.O
RBI [Reserve Bank of India] expresses its foreign

currency assets in dollars. However it holds a host of currencies, including
the ones in the basket comprising the Sterling, Pound, Euro and Yen, besides
the dollar. In addition there is a small diversified portfolio of non currencies.
However no Central Bank makes public, the currency composition of its
reserves.
7.2) Weak global market likely to weigh on Dalal Street:

Shares in India are likely to open weak a Tuesday, following a
downtrend in world markets on Monday. Key Asian and European markets
clocked looses on concerns that valuations have become expensive after the
6 month long rally. Shares in Hong Kong, Taiwan and South Korea ended
marginally lower while most markets in Europe were down around 1% or
more.
The emerging markets index comprising 22 countries fell 0.7%.
According to Bloomberg Data, the index is quoting at a price earning ratio
of around 21 times trailing 12 month earning its highest level in over 9 year.
Back home, the sensex is quoting at a 12 month trailing price earning ratio
of roughly 22 times, way below the 29 times it was quoting at in January
2008 before the market crashed . Market watchers say foreign fund flows
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will be crucial for the market to sustain recent gains as domestic institutions
have cut back on their purchases significantly.
The United States Federal open market committee begins its two
days meeting on interest rate policy on Tuesday. Most experts feel rates will
belief unchanged. In a recent interview, US President Barack Obama said
he did not expect the job market to improve any time soon despite signs of
an uptrend, there is speculation that the fed may discuss s cutting back on
the economic stimulus package it had unveiled to cushion the impact of the
recession. The index of US leading economics indicators in August rose for
the fifth straight time, further strengthening the popular view that an
economics recovery is underway. The conference board’s gauge of the
economic outlook for the next 3 to 6 months rose 0.6% in line with what
most exports had estimated. The latest rise comes on the back of a revised
0.9% rise in July.
Most of the United States Macro Economics data in the past 2
weeks, such as retail sales, new home construction, have been better than
expected. However, rising unemployment continues to be a cause for worry.
There are concerns that co-ordinate pull back of the economic stimulus
across markets could tighten liquidity, causing a partial pull back of funds
from risky assets like emerging markets equities crude, oil prices fell 2.5%
to 70.23% a barrel on the New York mercantile exchange. Gold and Copper
prices too were under pressure. The dollar climbed 0.6% against Euro, its
second consecutive day of gains.
But the recent news is that the Sensex has touched the magic figure of 17
thousand points. It shows that India is fast recovering from the dismal
recession it had been experiencing.
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7.3) US job losses slow unemployment dips:

The America Economy lost 247,000 jobs ion July and in a reversal,
the unemployment rate fell slightly to 9.4%, the government reported on
Friday {7-8-09}. Although business are expected to keep cutting jobs
through the rest of the year, the US Labor Department latest figures offered.
Some faint sign that the sinking job market was approaching bottom.
The length of work week in creased albeit

slightly foe 1st time since August t. A sign that businesses were not scaling
back hours to cut their pay roll costs. The government said fewer jobs were
lost this spring than it had initially estimated, reversing June job losses to
443,000 from 467,000. “The basic message is that the rate of job cuts is
diminishing and that’s good news” said Nariman Behravesh chief economies
at its global insight.
The Obama administration weathered intense criticism last month
when the place of the job losses accelerated after leveling off in May.
Conversation critics have the monthly jobs report which has rapidly because
e a political football, as evidence that the stimulus was not working, while
liberal have previously maintained that it showed have the economy needed
another jolt of stimulus .
7.4) Indian job losses slow unemployment dips:
P.T.O
Five lakh people were rendered jobless between Octobers to

December 2008 due to the recession, according to the latest government
study. The findings are part of a first of its kind survey conducted by the
labor and employment as part of a study on the effect of economics
slowdown unemployment in India.
A sample size of 2,581 units covering 20centres across 11 states was
taken up of the survey. Eight major sectors like Textile and Garment
industry, Metals and Metal product, IT and BPO, Automobile, Gems and
Jewelers, Transportation, Construction and Mining industries were also
included in the survey.
The total employment in all these sectors had come down from 16.2
million in September 2008 to 15.7 million by December 2008.exporting unit
has observed a higher decline in employment with gems and jeweler force.
This is followed by metal and textile sector which lay off 2.6% and 1.29% of
their work force respectively.
Among the domestic sector units, gems and jewelery again
witnessed the maximum decline in employment with 11.9% of their work
force losing jobs. This was followed by automobiles and transport sector that
shed 4.79% and 4.03% of their workforce. The study also ford that the
overall decline in contract workers was observed to be 3.88% during the
period in comparison to only 0.63% decline direct employees.
P.T.O
But once again the good news is that the corporates are likely to hike the
pay of their executives by 11 to 12 %
7.5) Sub prime:
In order to understand what is now happening in the world economy,

we need to go a little back in past and understand what was happening in the
housing sector of America for past many years. In United States, a boom in
the housing sector was driving the economy to a new level. A combination
of low interest rates and large inflows of foreign funds helped to create easy
credit condition where it becomes quite easy for people to take home loans.
As more and more people took home loans, the demand for property
increased and fueled the home prices further. As there was enough money
to lend to potential borrowers, the loan agencies started to widen their loan
disbursement reach and relaxed the loan conditions.
Since almost everybody was driven by the greed factor during that
housing boom period the common sense practice of checking the customer’s
repaying capacity was also ignored in many cases. As a result, many people
with low income and bad credit history or those who come under the NINJA
[No Income, No Job, and No Assets] category to all principles of financial
prudence. These types of loans were known as sub-prime loans as those
P.T.O
were are not part of prime loan market [as the repaying capacity of the
borrower was doubtful].
Like this way, the US banks were losing their funds in property and
having no cash in hand. Again these policies of United States were applying
to some other countries also and results are also same shown out, due to this
it will become a sub-prime crisis.
Though, America is a Capitalist country [liquid- cash] they only
know how to earn money. America is very much famous in producing
weapons. They sell their weapons to other countries and earn money.
P.T.O
8) IS RECESSION OVER?
P.T.O
8.1) Recession very likely over:
Federal Reserve Chairman Ben Bernanke said on
Thursday [15-9-09] that the worst US recession since the great

depression was probably over, but the recovery would be slow and it
would take time creates new jobs.
“Even though from a technical perspective the recession is very
likely over at this point, it’s still going to feel like a very weak economy for
sometimes” Barnake said after recovery would be slow and it would take
time create new jobs.
“Even though from a technical perspective the recession is very
likely over at this point, it’s still going to feel like a very weak economy for
sometimes” Barnake said after giving speech at a Brooking Institution
conference. In declaring the recession over, Bernanke went slightly beyond
the fed’s most recent assessment that the economy was leveling off and that
indicators on growth had improved.
However he cautioned that growth next year would probably be not
much faster than the economy so called long run potential rate, which meant
it would be slow to absorb excess capacity and pare the unemployment rate.
P.T.O
“The general view of most forecasters is that pace of growth in 2010 will be
moderate less than you might expect given the depth of the recession
because of ongoing headwinds” Bernanke said.
He spoken on the one year anniversary of the collapse of Lehman
Brothers, which sparked a global panic that the fed to cut interest rates to
almost 0%. Economists generally estimated United States trend potential
growth to be in a range around 2.5% Bernanke acknowledged that a
recovery could turn out to be either stronger or weaker than forecasters
expect, but warned of ongoing pain in the labour market under the expected
growth rate.
-Bernanke Ben.
8.2) US job losses may be finally over:

The number of Americans filing first time claims for jobless benefits
fell unexpectedly last week, a sign that the labour market is deteriorating at a
slower pace as the economy pulls out of the recession.
Application dropped by 12,000 to 545,000 in the week ended
September 12, 2009, from a revised 557,000 the week before, labour
department data showed in Washington on Thursday [10-09-09]. The total
number of people collecting unemployment insurance rose the prior week, to
6.23 million. The job market may be starting to stabilize as government and
private reports reinforce forecasts that economics growth will resume this
quarter. Economists surveyed by Bloomberg this month said the
P.T.O
unemployment rate will reach 10% this year, a reminder that hiring and not
pick up for several months and that consumer likely won’t lead the recovery.
It is nice to see another move down in initial claims, but the
continuing number is definitely kind of sticking at pretty high levels said
Michael Feroli an economist at JP Morgan chase and company in New
York. As long as were continuing to see pretty high initial and continuing
claims we’ll still have negative job growth.
-Shobhana Chandra.
8.3) The END of the Recession:
It appears the US economy is not shrinking any more. Pundits are

predicting a 2.3% growth in the GDP [Gross Domestic Product] in the 3Q
[Third Quarter] of the current year. If their perditions turn out to be correct,
the length of the current recession would be about 19 months the longest
since the Great Depression but just two or three months longer than the
P.T.O
recession of early 1970s and early 1980s and the sixth longest since the
beginning of the 20th century.
Short, it may be but the so called likely end of the recession does not
look sweet. The US economy remains fragile and job market conditions are
terrible. The economy has lost close to 7million jobs in less than 2 years.
The job loss continues although at a much lower pace than it did at the peak
of the recession.
True, there is some good news driving the positive forecasts. In the
2Q [Second Quarter] of this year the GDP [Gross Domestic Product] fell by
just 1% after shrinking by 6.5% in the 1Q [First Quarter]. According to
Christina Romer, Chief of the Presidents Economy Advisory Council, the
government stimulus package raised GDP [Gross Domestic Product] growth
in the 2Q [Second Quarter] by at least 2% points. Non-government experts
give some what less credit to the stimulus package per se but there appears
to be a consensus that government intervention has rescued the economy
front recession.
Stimulus spending has been just one of the several way in which the
government has tried to rescue the economy and so far, not the most
significant one. Perhaps that most important government intervention was
the bailout of banks that restored confidence in the ability of the banking
system to cater to corporate credit needs. The Federal Reserve is also buying
trillion of dollars worth of mortgage backed securities which has lowered
mortgage costs for home owners and new buyers. These decisions have been
heavily criticized by the media and US congress, but they have helped
rescue the economy from what could have became a second depression.
P.T.O
The good news is that the signs of economics recovery appear to be

global. A recent OECD report states that there are strong signs of economic
recovery in Italy and France and clear signs of troughs in Canada, Germany,
The United Kingdom and The United States. Asian economies are also
emerging from economics slowdown. Such recovery, if it materializes will
strengthen global economic growth.
There is also some mention that the current recession will not be V-
shaped but W-shaped meaning that the current expected recovery will be
followed by another recession very soon.
The long-term job market situation; however appears to be very bad.
According to July employment report, a third of the unemployment have
been out of work for more than 6 months, the highest since the government
started collecting this data in 1948. The number of persons who have been
unemployment for at least 15 months has increased by 7.4% since last
December. Indeed, if recession were measured by the state of the job market,
pundits would be cautions in pronouncing end of the recession in the US.
President Obama approval rating will not remain insulated from the
state of the job market for long and therefore his government is expected to
use stimulus funds to create jobs.
P.T.O
8.5) THE INDIAN SCENE:
-
“TIME TO TIGHTEN BELTS”
Later this month Prime Minister Man mohan Singh will travel to
Pittsburgh and meet the heads of government of the G20 nations. Among
other things, they’ll talk about when would be the best time to start
tightening fiscal belts around the world.
For over a year now, as rich nations slipped into recession, their
governments have thrown money around and dropped interest rates to stem
the slide. This seems to have paid off: the global economy is pulling back
from the brink. Even federal boss Ben Bernanke now believes that the US is
back on the road to slow recovery.
P.T.O
Many people believe that all countries should tighten their belts
together: a “co-ordinate exist strategy “ if you like Jargon for India, that
would mean keeping interest rates low and money supply trotting along
briskly for some more time, may be for as much as another year, while the
West limps back to normally.
That would be a big blunder. India’s economy is very different from
the development ones. There’s no reason why India’s policies should move
in lockstep with the West. The Great Depression thought as that India’s
economy is far, far more resilient to shocks than many supposed. Yes, the
contraction in the West hurt some export oriented industries, but even that
shocks seems to be easing.
Maruti Suzuki, the 800 kg Gorilla of India’s car industry sold 40%
more cars in August this year compared to August last Year. Export are a big
driver the West is suddenly discovering the virtues of saving money and
small, fuel efficient cars that were made for the thrifty Indian car buyer are
now best sellers overseas.
India domestic demand also seems to have up well. Hero Honda, the
market leader in motorcycle grew August sales by 37%.
India has an enormous enthusiasm for infrastructure, everything
from roads, ports and power to schools and water supply. A research from
Goldman sacs, published last week, reckons that India will need $11.7
trillion to fund all this over the next 10 year. That’s a huge turn of money,
but the report goes on to say that Indians can fund it out of their own
pockets.
Unlike the US where the savings rate was zero in 2008 and has
climbed back to about 7% today’s, Indians save a lot. The saving rate is
already over 35% of incomes and Goldman Reckons this’ll raise to 40% in
P.T.O
another 7 years. Don’t be surprised by this high number, it seems to be

fairly common in Asia Singapore’s saving rate has been around 45% for the
last 26 years, Chinas since 1993 and Malaysia’s from 1996.
Developed countries have relied on consumption to drive growth.
Over the next 10 years or so, India will rely on investment and savings to
grow. But to get there, we need policies that protect our own interest, not
chase the latest global fad.
The main threat to saving is inflation, rising price that eat into the
value of every rupee saved.
Anyone who shops for food will tell you that there’s only one way
that price have moved in the last one year. Northwards, its not just food
that’s getting costlier, all commodities are, from a lower of $37 per barrel,
crude oil new traders at $71; Gold recently hit $1,017 per ounce, a level way
above its historical trends of around $300 per ounce, Iron Ore, Copper and
Zinc price are also soaring.
High cost Gold affects the jeweler business, but ever rising food
budgets could bankrupt families. No democracy in India the political
tolerance for high inflation is very low.
That’s something Manmohan Singh and his team need to remember
when they talk” Exist Strategy” in Pittsburgh. For India, which never went
through a recession the problems are entirely different. We need to invest for
the long term. To do that, people need to have the confidence that inflation
isn’t going to vaporize their saving.
The only sensible option is to start right now, without for other
nations to start tightening their belts. India’s weathered the global crisis
relatively well. It now has to move fast so that prices are termed before the
rest of the world goes into a high inflation spirit.
P.T.O
IMPORTANT THOUGHT FOR RECESSION.
“ Coming together is Beginning, Keeping

together is Process, Working together is
SUCCESS”.
P.T.O
HOW SHOULD I ARREST RECESSION?
FINANCE MINISTER.
P.T.O
Survey Data
1) Company: LIC [Life Insurance Sector]—91M.
►PERSONAL DETAILS:
A) Name: Arvind Amrute.
B) Age : 48 yrs.
C) Sex : Male.
D) Phone. NO.: 9869453900.
E) Educational Qualification: B.COM, AIII.
F) Address: ----
Q.1) Can you say something about recession?

Ans. There is no recession in India. Recession is came when GDP [Gross
Domestic Product] growth has come in negative in 3Q [Three Quarter].
In India there is a slow down.
Q.2) What is your occupation? (Business/Service)

Ans. Service.
Q.3) What kind of business do you do?

Retail
Wholesale
P.T.O
Agency
Service like transport
Any other (specify)
Insurance Business. (Marketing and Service)
Q.4) What is the effect of recession on your business?
A) Downfall in sales/ Increase in sales.
B) Downfall in profit/ Increase in profit.
Ans. Downfall in sales. Due to slowdown.
Q.5) How did you handle the recession?

a) Reduce the price.
b) Increase the customers by month publicity.
c) Use your saving.
Ans. During slowdown, marketing was affected as there was less money in
the hands of public. With the help of publicity only we have reached revised
targets.
Q.6) Do you think recession will continue in 2010 also?

Ans. No it has already come to an end.
Q.7) If yes, what are your plans to face the recession?

Ans. NOT APPLICABLE.
Q.8) Do you have any suggestion to face the present recession?

Ans. 1) No mere recruitment.
2) Limited wage rise or step by step wage hike.
3) Revision of targets [ROTs] within short periods review.
Place:
P.T.O
(Arvind Amrute)
2) Company: CA (Chartered Accountant).
A) Name: Sanjay. B. Shinde.
B) Age : 42.
C) Sex : Male.
D) Phone. NO.: 02522-251288.
E) Educational Qualification: C.A.
F) Address: 502, Kasar Ali, Bhiwandi.

Ans. 2009, Recession is global recession. Every country is affected with
this. India is one of them, so we cannot define any one reason for recession,
there are many reasons.

Ans. Chartered Accountant (Practicing in Bhiwandi services like
Accounting and Auditing.)

Retail
Wholesale
Agency
P.T.O

Any other (specify)
CA (Chartered Accountant)

Ans. Our business/ occupation are of such nature that it is having absolute
relation with market and accordingly our business turnover and profits
increase or decrease.

c) Use your saving.

Ans. NO.


Ans. To face the recession we have proper future planning.
P.T.O
Place:
(Sanjay Shinde)
3) Company: Savla Consultancy Service.
A)Name: Bipin. Nemchand. Savla.
B)Age : 33.
C)Sex : Male.
D)Phone. NO.: 02522-262442/322168.
E)Educational Qualification: B.SC, H.D.S.E.
F)Address: Haridhara complex, 1st floor, office no.54, station road,

Anjurphata, Bhiwandi-421302.

Ans. Recession is an economics phenomenon where in goods and service
offered by different companies or individuals are falling in demand due to
the drastic decrease in the spending/ purchasing capacity of people. During
recession, many business wind up and people lose their jobs.

Ans. Professional. Insurance and Investment Consultant.

Retail
Wholesale
Agency
P.T.O

Any other (specify)
Consulting and Counseling people on Financial
Investment.

Ans. A) Downfall in sales.
B) Downfall in profit.

c) Use your saving.
Ans. 1) Try to cut experises which are unnecessary or unproductive.
2) Try to attack old and new customer by increasing advertisement
and awareness.
3) Launch new products or services.

Ans. No.

Ans. As mentioned in answer to question as above.

Ans. 1) Try to cut experises which are unnecessary or unproductive.
2) Try to attack old and new customer by increasing advertisement
and awareness.
3) Launch new products or services.
P.T.O
Place:
(Bipin. N. Savla)
4) Company: DR. Pravin Jain.
A)Name: DR.Pravin Jain.
B)Age : 35 yrs.
C)Sex : Male.
D)Phone. NO.: 9324954838.
E)Educational Qualification: BHMS, CCH.D.Pharm.
F)Address: Arihant Family Care Clinic, shop no. 6, asthavinayak

bldg, Anjurphata, AT: post Bhiwandi.

Ans. It mostly affects middle class people whose monthly income is fixed.

Ans. Business ( Professional).

Retail
Wholesale
Agency
P.T.O
Any other (specify)

Professional ( Doctor).

Ans. Downfall in profit due to discounts.

c) Use your saving.
Ans. Increase the customer by various publicity media: Audio Visual,
Mouth to Mouth, Holding & Banner’s, Advertisement, low profit ration.

Ans. YES

Ans. Decrease profit ratio, to give good quality product to customer; Give
good service & response to customers.

Ans. Increase the productivity, quality consumer ability, & out source to
face present recession.
P.T.O
Place:
(DR.Pravin Jain.)
5) Company: CLASSES.
A) Name: Someshwar V Chhittimalle.
B) Age : 36.
C) Sex : Male.
D) Phone. NO.: 9860312929.
E) Educational Qualification: MA, M.COM, LLB, GDC&A,

CA(INT), LLM.
F)Adress: 539, Pranita complex, Kombad pada. BWD.

Ans. Recession is the result of over production and poor demand in the
market and it is a cyclical in nature.

Ans. Business.

Retail
Wholesale
Agency
P.T.O

Any other (specify)
Running coaching institute.

Ans. Downfall in profit.

c) Use your saving.
Ans. By reduce the price.

Ans. No, economy is now over coming from recession.

Ans. NO COMMENT.

Ans. NO SUGGESTION.
P.T.O
Place:
(Someshwar v chittimalle)
6) Company: SADGURU PLY CENTRE.
A) Name: Vijay V Patel, Sandeep V Patel.
B) Age : 27 & 24.
C) Sex : Male.
D) Phone. NO.: 9890417530, 9324744414.
E) Educational Qualification: B.COM & M.COM.
F)Address: Ashtvinayak bldg, gala no. 4, Agra road, opp. Oswal wadi,
BHIWANDI-421302.

Ans. Recession comes from what? When Import is more than export is
called Recession in the Indian market. Automatically Indian currencies flow
in down and value also.

Ans. Business.

Retail
Wholesale
Agency
P.T.O

Any other (specify)

Ans. When I face recession I will increase the sale when I decrease the
profit that means Low Cash Sales.

c) Use your saving.
Ans. I will handle the recession by reduce the price indirectly will easily
face competition. Hence automatically sales will increase and flow of money
easily so. I will prefer an (a) option that is Reduce the price.

Ans. Yes, because when recession period is continue than slowly slowly it
comes Boom period. Indirectly it takes time.

Ans. First I will plan that why recession comes, than my business and
strategy and than finally implementation of all the point.

Ans. Devaluation of Indian currencies that automatically export will
increase when export is more than money flow easily in Indian market and
inflation are goes on down vice a versa of that deflation period comes it
mean boom period will start.
It is not easy work to devalued the Indian currencies because all the
exporter of Indian will sale of his product in Chip Rate as compare to other
country exporter.
P.T.O
So that I said before LOW MARGIN SALE this is the funda to use all
exporters.
Place:
(Vijay V Patel & Sandeep V Patel)
7) Company: UBALE VIKAS W (Lecturer)
A)Name: Ubale.Vikas.W.
B)Age: 32.
C)Sex : M.
D)Phone No:0251-2324675
E)Educational Qualification: PG in Economics. B.ED.

M.Phil (Economic)
F)Address:- --------

Ans. -----

Ans Lecturer.

Retail
Wholesale
P.T.O
Agency
Any other (specify)
Education

Ans. No Business.

c) Use your saving.
Ans. This is not a way.

Ans. No I don’t so.

Ans. ---------

Ans. If you think about this with a cool mind you will find that the
underlying cause of this depression is the greed of those who failed to
anticipate the consequence of their actions on a more ideological front it is
high time to have a rethink on the very idea of free markets and capitalism. I
think the time has come to evolve a capitalism where everything works
under a broad regulatory frame work and we do not see a repeat of this
condition where greed of some people can effect the lives of billions.
P.T.O
Place:
(Ubale Vikas W)
P.T.O

Recent Recession

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Recent Recession

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IMPACT OF RECENT RECESSION ON INDIA AND US.

Recession is the result of reduction in the demand of products in the

IT Industries, Financial sector, Real Estate Owners, Car Industry,

Recession is not to be confused with depression.

1.2) Are we facing recession or not:

1.3) Identifying recession:

1.4) Causes of recession:

opposing forces haves a struggle of wills. War is not necessarily considered

1.5) Effect of recession:

Foreclosure is the legal and professional proceeding

1.6) Stock market and Recession:

Some recessions have been anticipated by stock market

recession. In the 16 US recessions since 1919, the average length recession

1.7) Recession and Politics:

1.8) History of recession:

2) RECESSION IN US AND OTHER COUNTRIES.

Official economic data shows that a substantial number of nations

Domestic Product] growth data to show two consecutive quarters of negative

2.1) Past recession in the US:

2.2) Current crisis in the US:

The defaults on sub prime mortgages [home loan

3) IMPACT OF AMERICAN RECESSION ON INDIA.

Indian companies have major outsourcing deals from the United

Manish Sonthalia, head, equity, Motilal Oswal Securities says if the

performance of US companies [low firms, investment banks and media

3.1) Consequences of US recession on India job market:

4) RECESSION and INDIAN INDUSTRIES:

In the current global economic slowdown, every

sector in India likely to grow from around US $70 billion in 2008 to US $

C) PSU BANKS [Public Sector Unit]

least another 90 million subscriber in 2009 despites of recession. The Indian

I) M&A & MARKETING CONSULTANTS:

J) MEDIA AND ENTERTAIMENT:

advertising revenues will increase for the commercial channels. Also

5) SMEs: STRENGTH OF INDIAN ECONOMY:

• Significant Strides Despite Odds:

• Swimming Against Slowdown:

• BANK FINANCE To SMEs:

B) STATE BANK OF INDIA [Pillar of support since 1956]:

5.2) Micro finance:

• Small Lenders Beat Big Crisis:

• Micro Financing In India Needs Technology Shift:

• Micro finance: Impact On Indian Market:

• Recession Has Not Affected US As We Depend More On

(Interview with a Que. & Ans)

2) How can MFIs be made more affordable to the poor?

time, to meet the requirement of MFIs [Micro Finance Institutions]. They

4) What is the role of the government in the upliftment of this sector?

Ans: At present Microfinance non banking financial companies are working

• How Can We Develop Microfinance Sector:

The bank has been consistently taking initiatives to develop the

6) RECESSION: AN OPPORTUNITY FOR INDIAN

6.1) Global Recession is also an opportunity for India:

outsourcing service industry is strongly dependent an North America and

6.2) Branding in Times of Recession:

Yet, when there is an economic downturn brand support is amongst

6.3) Winning In Turbulent Times:

(Chairman of HUL at the company’s AGM held on Friday, July 3 2009).

6.4) Steps Taken by Government and RBI:

Some economists say that the production orientation of the economy

7.1) RBI puts trust reserves in foreign bank again:

In what could be another sign of revival of confidence

Settlements [BIS] and the international monetary fund. This began