presentation on recession

8/14/2019 Presentation on Recession

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A SYSTEMATICA SYSTEMATIC

ANALYSIS ONANALYSIS ON

Presented By:-DEEPAK SONI

UIT-RGTUBHOPAL


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What is Recession? A Recession is a contraction phase of the business

cycle.

National Bureau of Economic Research (NBER) isthe

official agency in charge of declaring that the economy isin a

state of recession. They define recession as :significant decline in economic activity lasting more than

a fewmonths, which is normally visible in real GDP, real income,employment, industrial production, and wholesale-retail

sales.


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What causes the An economy typically expands for 6-10 years and tends

to gointo a recession for about six months to 2 years.

A recession normally takes place when consumers looseconfidence in the growth of the economy and spend less.

This leads to a decreased demand for goods and services,which

in turn leads to a decrease in production, lay-offs and asharp

rise in unemployment.


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Source data: Realtytrac press releases of USforeclosure market report


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Oil prices graph


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Low GDP growthindicatin Recession in


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Impact on IndiaA slowdown in the US economy is bad news forIndia because:Indian companies have major outsourcingdeals from the USIndia's exports to the US have also grownsubstantially over the years.

Indian companies with big tickets deals in theUS are seeing their profit margins shrinking.


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IT and Real Estate Sector The key challenges faced by the industry noware inflation and the psychological impact of theUS crisis, leading the companies to hit the panicbutton.Bonuses, perks, lavish parties, and many otherbenefits are missing as companies look to cutcost.

India's IT export growth is also slowering downOne of the casualties this time are real estate,where building projects are half-done allover the country and in this tight liquidity


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Layoff and unemploymentHundreds of workers have lost jobs in diamond

jewellery, textiles and leather industry.Companies in IT industry have stopped hiringand projected lower manpower need.Firms attached to the capital market are layingoff people and large companies are puttingtheir future expansion plans on hold.


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Industrial sectorGovernment and other private companies arereluctant in starting new ventures andstarting new projects.

Projects that are halfway to completion, orcompanies that are stuck with cash flow issueson businesses that are yet to reach break even,will run out of cash.

Car, bike & truck sales downSteel plants are cutting productionHospitality and airlines are hit by poor demand


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Recession in TATA MOTORS Tata Motors lay off 400 more workers. TATA MOTORS to shut two commercial vehicleplants for six days .

Reason of Recession in TATAMOTORS The main reason of recession in Tata motors isthat the financers are not ready to financed old(second hand vehicle) vehicles so fleet ownercouldnt sell his vehicle and buy new vehicle.


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Comments The TATA finance is the subsidiary of TATAmotors which finance only new TATA vehicle itdoesnt finance old vehicle. Tata finance shouldfinance old vehicle on his term and condition.


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Position of the Banks in MP


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It happened because:- The investors pull out their money from sharemarket and deposited in the banks.Interest rates of the banks increased up to 2 to2.5%.Recession in the real state and properties

sectors.Economic Downfall in the share markets.


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Endeavour to overcome There are following steps to overcome

recession

3. Encourage exports.4. Provide Accessible Credit for Business.5. Improve Tax Collection.

6. Set Aside Large Amount for Social Welfare.7. Control Expenditures in Other Fields.8. Improve Tourism.


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presentation on recession

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