The document summarizes the global economic meltdown that began in 2008. It discusses recessions and depressions, the history of the Great Depression, and factors that led to the 2008 crisis such as the housing bubble and subprime lending. It describes the impact on various sectors in India as well as government initiatives to stimulate the economy. While conditions have improved, certain sectors remain affected. The conclusion emphasizes learning from the crisis and the need for continued monitoring of economic conditions.

1. Economic Aspect: Global Meltdown
Presented By:
Aniruddha Sanyal
Abhishek Nandan Mishra
Anita Kumari

2. Recession and Depression
• Recession: In economics, a recession is a business cycle
contraction, a general slowdown in economic activity over a
period of time.
• Depression: In economics, a depression is a sustained,
long-term downturn in economic activity in one or more
economies. It is a more severe downturn than a recession,
which is seen as part of a normal business cycle.

3. History of Economic Meltdown
.
G
D
P
Years
Graph of the Great Depression timeline from 1920 - 2010

4. How it all started?
• Growth of the housing bubble
• Easy credit conditions
• Sub-prime lending
• Predatory lending
• Increased debt burden or over-leveraging
• Commodities boom
• Banking industry collapsed (Lehman Brothers announced bankruptcy)
• The crisis engulfed the whole US economy
• Soon the stock market of many countries were in red
• Worst hit were: the European Union (EU) and Japan

5. Impact on Indian economy
Airlines
Hotel
Real
Estate
Exports
IT

6. Government Initiatives
Government announced a package of `35,000 crores in Dec 7,2008.
Government announced another package on Jan1, 2009 .
RBI announced reduction in CRR from 5.5% - 5%.
On February 24, 2009, the government slash down the excise duty
from 10 % to 8%.
Minister Kamal Nath announced a package of `325 crores for leather,
textiles, gems and jewellery on February 26, 2009.
The government decided to cut service tax from 12 % - 10 %.

7. The Present scenario
• The badly hit sector at present being the financial sector, and major issue being
the "LIQUIDITY Crises" in the market.
• To curb the liquidity crises the RBI will continue to initiate liquidity measures as
long as the current unusually tight domestic liquidity environment prevails.
• Lowering of interest rates and reduction of PLR is necessary. The BOP- Balance of
Payment deficit – at a time when domestic credit demand is very high – is resulting
in a vicious loop of reduced access to liquidity, slowing growth, and increased risk-
aversion in the financial system.
• Several people lost jobs-facing the financial problems.
• But , the current condition of Indian markets have drastically improved. There is
absolute transparency and instant transactions.
• The markets is undergoing a change from a bullish temperament to a bearish slide.
• Any small bit of information or even a rumour from any part of the country can
affect the market and is a fairly accurate indicator of the prevalent atmosphere in
the region or country.
• Banks providing business loans at low rates.

8. ARE INDIA’S POMPOUS CELEBRATIONS OVER?
Agriculture set to
grow by 2.4%
against 4.9%
Financial
Year 2009
-2010
Manufacturing is
likely to expand by
3.4% against 8.2%
Financial, Insurance
& Real estate are
set to grow by 8.1%
against 11.7%
Trade,Hotels
,Transport &
Communication
Projected to grow
by 8.1% against
12.4%

9. The moral of the story
• Economic meltdown reminded us that it is the time to think,
reassess, revaluate, redefine and realign. It is time for full brain
thinking. The recession got our attention; we now must learn from
it and use its tough but valuable lessons.
• We realize we can't spend what we don't have; credit and credit
cards are not the same as cash.
• We should not always rely on the daily list of BSE top gainers or BSE
top losers as it only takes a minute to get the things changed here.
Keeping ones eyes and ears open can insure the investor against
any major losses.
• Following such rules and with some experience and practice, one
can emerge victorious and can churn out a fortune for himself as
well. Hence, it is a way to turn your savings into a fortune.

10. What is still needed?
• The Indian Stock Markets can be a very rewarding avenue of investment but
the constant changes and the inherent dynamic nature of the markets can
wipe out your funds or savings within a minute. Thus, the key words for every
retail investor is to be constantly alert and very observant.
• Keeping ones eyes and ears open can insure the investor against any major
losses. Following such rules and with some experience and practice, one can
emerge victorious and can churn out a fortune for himself as well. Hence, it is
a way to turn your savings into a fortune.
• The case still remains that most countries don't actually know they're out of
recession until the official numbers are produced.
• Now is the time when employers need to be thinking ahead and repositioning
themselves for the next phase of growth.
• The National Bureau of Economic Research only announced in December 2008
that the United States had been in recession since December
2007.Therefore,proper testing techniques should be designed , implemented,
and made available to know the inner insights of the market and economy.

11. Bibliography
• www.wikipedia.org
• www.scribd.com
• www.ezinearticles.com
• www.workers.org
• www.clickindia.com