RECESSION A DISASTER FOR INDIA

Unemployment is the greatest dread of any man, and RECESSION being the root cause for it.

1. Recession a fancy term was hardly known about a year ago. But today it has become

a cruel global reality of twenty-first century.
2. It all started when the major financial institutions of US went bankrupt due to sub-

prime crisis. Economic meltdown has affected almost all countries including India. The prime reason being, world trade does not functions in isolation, as all the economies are interlinked to each other.

3. A quick look at any of the newspaper or business magazines will inform you that

due to recession a lot of economic indicators are falling – like estimated GDP growth, industrial growth rate, employment numbers, inflation, real estate prices. This list goes on and on…
4. An average Indian might not understand all these economic stuffs, but for them

recession comes as a SHOCK. For them recession means, reduced pay checks, job cuts and increased insecurity. Recession has hurt the spirits of an Indian.

5. Now, talking about the industrial sectors, the news has been very bad. According

to govt. data, industrial growth has been merely 1.3%, which is the lowest IIP (index of industrial production) data ever in the last ten years.

6. India's export industry which accounts for nearly 20% og GDP, has been badly

affected by the economic slowdown in its traditional markets of Europe and United States, which account for 40 per cent of exports.
7. India's exports declined for the 10th straight month in July by 34.1%, and imports

dropped by 37.1 per cent in July as compared to previous year.
8. Indian textile industry was one of the world's best performing industries, during the

past few years, Until the clutch of recession took over. Economic slowdown in the US and EU has resulted in a drastic decline in the country's garment exports.

17. 14. Would you believe it that About 25 students from IIM (Indian Institute of Management) Ahmadabad are yet to get their placement. Right now what is happening is that. People who had invested huge amounts in the stock market lost their considerable assets. The IT Enabled Services sector is badly hit by recession since a majority of Indian IT firms derive 75% or more of their revenues from the United States--a classic case of having put all eggs in one basket. 10. Therefore in the end.. 13.9. And people still says recession is a god’s gift…. Reeling under recession. but this time it’s the other way round. Nearly 5 lakh people had lost their jobs in 10 industries by July. 16. 11. ended their life. 12. 15. This is for the first time this has happened. Flagging exports has forced industries to scale back production and cut jobs. Usually. the lower-skilled people are being pushed out of the market by higher-skilled workers who have been earlier laid off. Some of which couldn’t bear the trauma. I would like to say that. 2009 has been a very Tough Year For First Time Job seekers. the foreign clients. fii and fdi drew out money from the Indian stock market as a result of which BSE sensex dropped sharply from around 23000 base points to as low as 8000. according to Trade Minister. This may be for the first time in India's history when it is more difficult for the professional graduates to find employment or an appropriate employment. in fact “recession is a god’s punishment to India” . We cannot talk about growth of a country when its citizens are suffering and for me recession is a not a God’s Gift To India. This is not the end of the story. The present job recession has batterd the aspiration level of the Indian youth. these students are grabbed by the time results are out.

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