▪ The world is witnessing one of the most critical changes in global economy, communal, regional and national conflicts which is the worst recession of the century. This has made an impact on every sector and there is a need to battle these crises with a new mindset. ▪ The current slowdown, which world is witnessing, is cyclical, which happens every 10 years. The last time it happened was in 1998. During every slowdown there are companies, which close down; especially the small ones. ▪ This paper is an attempt to look into the Impact of global recession and financial management challenges and strategies: For Indian Economy, major initiatives taken up by the Government and Reserve Bank of India in the order to contain it with special focus on employment, import-export, interest rates, risk management, credit demand and taxation, Liquidity etc. to come out from this situation of recession.
[pic]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 of products. Again, it could be the result of inflation or a combination of increasing prices and stagnant economic growth in the west.
A global recession is a period of global economic slowdown. The International Monetary Fund (IMF) takes many factors into account when defining a global recession, but it states that global economic growth of 3 percent or less is "equivalent to a global recession". By this measure, three periods since 1985 qualify: 1990-1993, 1998 and 2001-2002.
Indian economy is shrinking, unemployment rolls are growing, businesses and families can’t get credit and small businesses can’t secure the loans they need to create jobs and get their Products to market. A recession, which included two successive quarterly...