SLOWDOWN OF THE

INDIAN ECONOMY
By:
Deepshikha
Divya Vishwanadh
Sanjita Tandon
Sumedha Gupta
Sweta Shishodia
Vishakha Upadhyaya

CAUSES
Galloping inflation and sky rocketing prices of
crude oil and other commodities.
One of the most important causes of economic
recession is unrestrained capitalism. We are
paying our dues for years of overproduction and
rampant greed.
Another one of the important causes of
economic recession is falling demand for goods
and services.
The demand for the excess production just won't
be there, and we have a waste of resources.

Affected Indian Industries

Export Industry
IT Industry
Real Estate Sector

Effect On IT Industry
Resorted to cost cutting.
Less recruitment of new
personnel.
Delay in payment of
salaries.
In extreme cases, layoffs
have also occurred. e.g.
Wipro has laid off 5000
people to save costs.

Effect On IT Industry
Industries have
reported single digit
revenue growth. e.g.
Microsoft, Oracle, and
Cisco have reported
2%, 4% and 5%
growth respectively.
(The Economic Times
dated 24-05-2009 to
27-05-2009).

Effect On Real Estate Sector

As a result of hike of interest
rates, EMI and tenure of loans
has increased which in turn
reduces the demand of real
estate.
The market rates in India are
also dropped by 10 to 30% in
most of prominent as well as
upcoming cities.
Young property investors in India
are selling off their assets at a
loss because they can no longer
afford to pay the interest and
costs associated with owning
multiple properties.
( The Economic Times dated
2-06-2009 to 7-06-2009)

Effect on Export Industry

Exports for October 2008
contracted by 15% on a yearon-year basis.
Close to 50% of Indias exports
- textiles, garments, gems and
jewellery, leather and so on
-originate from the labourintensive small- and mediumenterprises.
A sharp fall in export growth
could mean job losses in this
sector.
( The Economic Times dated
25-06-2009 to 1-07 2009)