Recession Essay one of the important topic under Economics. It can be defined as significant decline in general economic activity extending over the period of time. Many professionals and experts around the world believe that a true economic recession can only be confirmed if GDP (Gross Domestic Product) growth is negative for a period of two or more consecutive quarters
India’s GDP growth has gone down from a high of 9.2% in third Quarter of the year 2016 to 5.7% in current 4th quarter of 2017. The economic growth rate is probably the slowest in last many years. All four contributors to economic growth- domestic consumption, foreign consumption or exports, private investment and government spending- are hit by the slowdown.
Companies in India especially IT and BPO industry have most outsourcing deals from the US. Even our exports to US have increased over the years.
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 us since a lot of people look for better opportunities in the west. In India also new hiring was put on hold the salaries of existing people were cut or not increased.
Airlines faced low seat occupancy rates and losses due to fierce competition and lesser people flying around the world for business.
The textile, garment and handicraft industry are among the worst affected.
The real estate has also a problem of tight liquidity situations, where the developers are finding it hard to raise finances.
The public goods are provided by government and the government needs tax revenues to supply them and these depend upon national income. Then there is employment. A demand for labor exists only when there is a demand for goods. So growth is necessary if employment is to be assured. There is not only a pool of unemployed persons in India to absorb but the country also needs to provide employment to youth continuously entering the labor force. The slowing of the economy is a source of concern as an economy that has been slowing for five quarters is unlikely to turn around quickly. Besides, it may not be able to revive on its own.
While recovery is still far from certain for some nations across the world, the negative impact of the recession is withdrawing into the background as many companies seek to work towards connecting innovative technologies and marketing strategies to combat the effects of the meltdown.
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