CHAPTER - 2

REVIEW OF LITERATURE
 REVIEW OF LITERATURE

_______________________________________________________________________

As we all aware of the fact that for conducting a new research work there should be some
base or already published work related to the same topic should be available. It is a proof that
every relevant aspect of the study that is already published has been read by the researcher. In
the same manner this research work is also based on some already published studies, and here
almost every aspect has been described that were associated with this research work. It is
mandatory for every new research work that it should be linked and connected directly or
indirectly to the previous research work done on the same topic of research. And to correlate
the old research work with the new research work on the basis of already published work is
known as review of literature. Basically the review of literature gives a brief description
about how the research work should be presented and it helps the researcher to move ahead in
the right direction by referring to previous published studies without any confusion.

In this study the researcher has gone through with a vast review of related literature, for
presenting the study in an appropriate manner and in a significant direction as from where to
start and where to stop. The researcher has presented the literature reviewed in a tabular form.
The literature reviewed was distributed into subheadings .i.e., every review must come under
some headings distributed according to the objectives formulated. So that it become easier to
study and analyze the given review. It also helped the researcher to achieve the desired results
of objectives formulated in an effective manner.

 1. THE OCCURRENCE OF FINANCIAL CRISIS IN USA AND ITS AFTER

AFFECTS

23
 TOPIC OF RESULTS
AUTHOR’S
S.No. YEAR THE KEY FINDINGS &
NAME
RESEARCH CAUSES
Recession in the
During the recession United States is
of 1953-54 the U.S. bound to cause a
economy was serious recession
contracted but the in the rest of the
The United
economies of rest of world and also it
27
States Balance
1. (1959) Furth H. J. the world especially causes a serious
of Payments in
of the Western Europe problem of deficit
Recession
was expanding which in the balance of
was followed by the payments of the
outflow of the private rest of the world
capital from the U.S with the United
States
American household
The life of
has declined by 20%.
Americans after
Moreover, the survey
slowdown was
found that half of the
very painful and
adults in U.S. labour
horrible for
force (55%) have
survival. In the
How the Great experienced some
same manner all
Recession Has work related hardship
2. (2010)10 Been, J. those economies
Changed life in in terms of –
who either
America unemployment, a cut
directly or
in pay, a reduction in
indirectly
work hours,
connected in
involuntary move to
dealings with
work part time or even
USA, was in
lost their jobs
trouble to endure
unwillingly
3. (2011)23 Dooney, J., Impact of Due to breakdowns in Lack of demand

24
 & Recession on America thousands of has decreased the
Blackmon, HR Strategies businesses and revenues of
O. millions of workers almost all the
have suffered with the business units of
fallout. The number of USA and hence
unemployed people in reduction in the
America was doubled profits of Indian
since the recession Companies too
period started, from
7.2 million to 14.7
million and the
unemployment rate
has reached to
9.5percent
Growing income Insufficient
inequality in US, liquidity buffers,
restricting from excessively
unequal access to leveraged
quality education, financial
which leads to bad institutions and
implementation of inadequate
financial policies and coverage of
Role of RBI their improper certain risks have
4. (2012)86 Sinha, A. Regulatory regulation and been ignored by
Framework supervision. banks of USA
Moreover absence of which leads to the
regulatory framework occurrence of
has contributed a lot such huge
for raising such crisis financial crisis.
globally as there were Just because of
no checks on the improper checks
quantity and quality of and control on
capital. capital flow

25
 Historically housing
market and
automobile industry Automobile Sales
contributes in the USA
significantly to U.S. dropped
Surviving the GDP growth. As a extensively in the
Global result when recession last recession
Hiraide, N. Recession and hits these two sectors, compared to
& the Demand it causes the major recessions in
5. (2012)33
Chakraborty for Auto downfall in GDP. 1982 and 2001
, K. Industry in The During this period fall due to three
U.S. – A Case in GDP was 5.14 ‘rough waves’-
for Ford Motor percent, while the fall high gasoline
in residential prices, the credit
investment was 34% crunch and the
and fall in auto job losses
production was 44
percent
A recession is Every economy
preceded by several has gone through
quarters of slowing periods of fast
down , economy and growth, slow
the stock markets are growth, no
Global closely related to each growth at all and
Recession and other. The stock even negative
6. (2012)68 Sakthivel G. Dynamics of markets reflect growth
Indian Stock optimism and sometimes. In the
Market cheerfulness of the same manner US
economy. And Indian economy has
stock markets were been facing such
also crashed due to a negative period
slowdown in the US since few years
economy back

26
 The current recovery
is almost negative for
household income
The post
during any post –
recessionary
recession period in the
period was not so
past decades. And the
good for the
median income of the
A Recovery Americans as
American households
7. (2012)40 Kochhar, R. No Better than they still have to
decreased by as much
the Recession suffer still
in the two years after
because of the
the official end of the
shortage of
Great Recession as it
money and other
did during the
essential goods
recession itself and
decreased up to that
much level

27
8.

Exhibit No. 4.0 - Bank Cycle of USA

Explanation: the given figure describes the cycle of Banking facilities provided by the Govt.
of USA as how it became a cause of huge financial crisis.18

28
9.

Exhibit No. 5.0 - Housing Cycle of USA

Explanation: the given figure describes the cycle of Housing facilities provided by the Govt.
of USA to its citizens, which was the major cause of the occurrence of financial crisis.18

29
 2. HOW & WHY INDIA IS HURT BECAUSE OF THE RECESSION IN USA

RESULTS
AUTHOR’S TOPIC OF THE
S.No. YEAR KEY FINDINGS &
NAME RESEARCH
CAUSES
India has grown up
with plenty of foreign
capital invested by
many of the developed
The major foreign
economies in order to
companies
earn a good amount of
operating in India
profits from such an
are generally
emerging economy.
subsidiaries or
Chandra, Role of Foreign While assets in India
10. (1977)15 associates of
N.K. Capital may form a small part
some giant
of the worldwide
transnational
compound but still the
conducting
world’s largest three
business on a
business house among
global scale
the top 20 rated by
Dutt Committee have
invested in India and
doing very well
There was a bad
Impact of impact of
GDP suddenly
World’s recession on
dropped during the
Economic Indian economy
year 2008 to an
Sachdeva, Recession on because of the
11. (2009)66 average of 5.5%,
J.K. India’s Growth globalization of
which was above 8%
Perspective - Indian markets,
consecutively for
Theories and associated with
three years since 2006
facts many countries
and with USA too

30
 Global slowdown was
an outcome of two
events – absence of It was difficult to
Global
regulatory framework maintain the
Economic
and mismatch aggregate demand
Slowdown and
between financial at a high enough
12. (2009)22 Deloitte its Impact on the
innovations and the level to stimulate
Financial
ability of the the real estate
Services
regulators to monitor sector caused due
Industry in India
them – immediate aim to global downfall
should be to fix the
financial system
India is the fast
becoming retail The scope and
heaven for the world. depth of change
There are over 15 has taken place in
million retail outlets India for both
Impact of
in India and 80% of marketers and
Global
these are small family retailers. But due
Recession on
businesses. The to global
Indian Retail
13. Kumar, S. striking feature of slowdown the
Sector
(2009)47 & Bakshi, Indian retail is duality- Retail confidence
S. presence of modern has plunged down
having 4% share and to a level of five –
traditional retail with year lower rate
96% share
India has implemented Being the
The Global
a series of trade, favourite
Economic
Kumar, R., industry, and destination for
46
Crisis: Impact
14. (2009) & Vashisht, investment reforms, foreign
on India and
P. which led to effective investment has
Policy
liberalization of the became the basic
Responses
economy and ending a cause for

31
 long period of suffering with
isolation from global recession later
markets and flow of
financial as well as
technical activities.
That is why the Indian
economy has emerged
as an attractive
investment destination
for foreign portfolios
during last brutal
recession the turning
point was the decision
in September 2008 to
let the Lehman brother
fail, an event that had financial crisis are
a series of disastrous prolonged affairs
cascading effects and with a wider and
hence the real house severe impact
The Impact of
prices were declined global economy
the Crisis on the
by 36% over five as a whole and
15. (2009)55 Mohan R. Indian Economy
years on an average, Indian economy
the unemployment too could not
rate rises by 7% in remain as
four years and the exception
Government debt has
increased by an
average of 86% in the
post second world war
episode

Global The impact of housing The international

Recession- The bubble of 2007 has financial
Sub-Prime passed to other institution of

32
16. (2010)39 Kaushal, L. Crisis economies too. India, developed
like most other economies
emerging market suffered with a
economies is impacted major obstacle in
but not so severely terms of heavy
because of the losses and it was
banking system certain that
regulation of complex developing
instrument like CDO economies too
will suffer with
major or minor
impact depends
upon their
internal policies
to survive.
During financial crisis
the demand for
agricultural products
Due to inflation in
is declined in the
food and non food
domestic and overseas
commodities will
markets, which
cause a decline in
Chand, R., Effect of Global directly affect the
the public and
14
Raju, S.S., Recession on prices and profitability
17. (2010) private
& Pandey, Indian of agricultural
investments in the
L.M. Agriculture commodities globally.
Indian agriculture
The slowdown leads
sector
to a severe trade
competition -
difficulty to export
and to compete with
imports
Global India is also hurt by All those
18. (2011)64 Raval, S. K.
Recession and the US crisis enterprises who

33
 Its impact on especially all the had trading with
Indian Economy sector that deals with USA in any form
US were affected of import or
majorly. And a export were
slowdown in export affected badly,
growth also has other especially the IT
implications for the sector. Whose
economy. Close to 50 major revenues
% of exports- textile, come from the
garments, gems and USA
jewellery, leather and
so on – originated
from the labor
intensive – small and
medium enterprises
who were suffering
with job loss due arise
of crisis
Central Banks in Asia The change in the
have become major structure of
institutional investors. European
They have built large financial system
Understanding
foreign exchange can be attributed
the Financial
reserves, major part of to the
Crisis, Post
which is in US liberalization of
Crisis Policy
19. (2011)12 Bhatia, V. Treasury securities. international
Implications and
The primary reason of capital
analysis of
this behaviour is to movements in
Public
have favourable order to create a
Comments
balance of payments common
by under valuing the regulatory
currency. In the last framework for the
two decades the EU- provision of

34
 25 financial system financial services
moved away from a as part of the
bank based towards a European Internal
market based financial Market
system. They
identified the process
of monetary and
financial integration
as the underlying
cause of these changes
Examined the Indian
business cycles pre Though India has
1991 economy and emerged as a
post 1991 economic strong economy
Has India liberalization reforms. in the era of
Emerged? And observed that globalization and
Ghate, C.,
Business Cycle increase in privatisation but
Pandey, R.,
20. (2012)28 Stylized Facts globalization, sectoral still it is not
& Patnaik,
from a shifts, and milder strong enough to
I.
Transition difference between ignore the global
Economy growth rates in growth happenings and to
slowdowns and remain isolated
expansions has led to from such bad
a better ability to affects
absorb the shocks
The crisis could The Indian
impose an effect on economy too has
Indian economy suffered with an
Bhardwaj, Impact of
through three channels acute recessionary
21. (2012)11 N. & Recession on
(i) By trade channels- flame because of
Kumar, M. Indian Economy
via import and export its trading via
from business partners these three
globally, (ii) By channels globally

35
 financial channel –
due to cross border
financial linkage have
increased extensively,
(iii) By Confidence
channel – decline in
the confidence among
the citizens may
deteriorate its
economic conditions
Indian economy is an
underdeveloped and
mixed economy,
which is divided
mainly in three major
Apart from this
sectors: Primary
India is the 19th
sector that contributes
largest exporter
14.1% in GDP,
Indian and 10th largest
Swarup, G., Secondary sector that
Economy: An importer at global
22. (2013)88 & Chandel, contributes 26.9% in
Overview 2007- level, which was
S. GDP and Tertiary
20112 the main cause of
sector which
recession
contributes 59% in
occurrence in
GDP. Indian
India
Economy is the 9th
largest in the world by
nominal GDP and 3rd
largest by purchasing
power parity (PPP)
Arora, D., India’s The effects of crisis The business
Rathinam, Experience came in India through dealings with
23. (2010)5
F., & Khan, during Current trade and capital developed nations
M. S. Global Crisis: A outflow, and were by the developing

36
 Capital Account contained by effective nations has
Perspective use of fiscal and caused them to
monetary policy. suffer with heavy
Further it was losses due to non
mentioned that debt payment of their
flows are more prone bills, which
to crisis than equity results into a
flows, especially the drastic vicious
short- term debts circle of
could be more harmful unemployment,
to the health of an layoffs, salary
economy because of cuts, shut downs
their pro- cyclical etc. (in India also)
nature

24.

Exhibit No. 6.0 - Foreign Trading in India during Recession

Explanation: the given graph reveals that import were more than export of the commodities
from India, which causes a negative trade balance for the economy and also the main cause
behind the occurrence of impact of recession in India. 30

37
3. ROLE OF IT SECTOR IN INDIA

TOPIC OF RESULTS
AUTHOR’S
S.No. YEAR THE KEY FINDINGS &
NAME
RESEARCH CAUSES
During late 1990s
Indian software
industries and IT
professionals were in
huge demand due to
internet boom and to
tackle the Y2K
Hence India
problem, which was
became a hub for
taken as a rumour
completion of all
spread by IT
their tasks. In fact
Outsourcing companies to escalate
all of them are
to India: the IT business. But
doing very well
25. (2004)16 Chithelen, I. Causes, before that the Indian
and did a great job
Reaction and companies were hired
even during
Prospects to do tiresome jobs of
recession, they
repetitive nature which
survived well and
were rejected by the
came out of it
IT professionals of
sooner
U.S. Therefore due to
rise in the demand for
IT staff the U.S. has to
search for cheap
labour with
qualification and other
skills
Outsourcing European and North Although both are
26. (2007)31 Henley,J.
the Provision American company’s developing

38
 of Software employment searched economies but
and IT – for the obvious still grown as an
Enabled preference to relocate IT hub and has
Services to its software emerged as best
India: development and choice to
Emerging information outsource the
Strategies technology- (IT) software work to
enabled business these two
services (ITES) due to countries only
cost comparison factor
and alternatively many
Indian companies have
become captives of
European and North
American countries.
And it was found
during an annual
survey conducted by
A. T. Kearney’s of top
executives of 1000
global companies, that
India and China is the
top rival of one
another to become the
most favourable
destination for
outsourcing
Impact of The IT –ITES industry Indian IT-ITES
Global in India has today industry has
Kumar, Recession on become a growth displayed
27. (2010)45
N.A. Indian IT engine for the resilience and
Industry and economy, contributing firmness in
Effectiveness significantly to contradicting the

39
 of E- increase in the GDP, unpredictable
Business in urban employment and situations & to
the Era of exports, to achieve the cope up
Recession vision of a powerful
and resilient India.
While the Indian
economy has been
impacted by the global
slowdown
IT-ITES industry in
India has today
The information
become a growth
technology sector
engine for the
has been playing a
economy, contributing
key role in
substantially to
fuelling the Indian
increases in the GDP,
economic
Impact of urban employment and
performance
Global exports, to achieve the
which has been
Recession on vision of a powerful
stellar with robust
Indian IT and resilient India.
GDP growth.
Industry and While the Indian
28. (2011)6 Arora, N. India’s total IT
Effectiveness economy has been
industry’s
of E- impacted by the global
(including
Business in slowdown, the IT-
hardware) share in
the Era of ITES industry has
the global market
Recession displayed resilience
stands at 7%; in
and tenacity in
the IT segment
countering the
the share is 4%
unpredictable
while in the ITES
conditions and
space the share is
reiterating the viability
2%
of India’s fundamental
value proposition. The

40
 main reasons for the
successful
establishment of
software companies in
India and its strong
performance can be
attributed to the
following: Cost
Advantage, Quality /
maturity of process,
Ease of Scalability
With the global
financial system
getting trapped in the
quicksand, there is
uncertainty across the
Indian Software
46 percent of top
Industry. The US
five Indian IT
banks have huge
industry’s revenue
running relations with
Future HR comes from the
Indian Software
Challenges in top most
92
Companies. A rough
29. (2012) Verma, A. the Era of renowned
estimate was
Economic financial
mentioned in the
Crisis corporations’ of
article about the job
USA, who later
loss at least a
on declared as
minimum of 30,000
bankrupt
Indians could be
impacted immediately
and around 61 percent
of the Indian IT
company’s revenue
will get influenced

41
 from the US top
financial corporations

Information
technology (IT)
topped the group with
over 2.1 lakh jobs
generated in the sector
between January-
December 15, 2012
across the country as
compared to the same A total of over 5.3
period of last year. lakh jobs were
Other prominent job generated during
generation sectors the aforesaid
Indian included automobile period across
Labour (22,890), financial India i.e. over 2.8
Kolamkar,
30. (2013)41 Journal (A services (22,500), lakh jobs in first
D.S.
Monthly manufacturing half of the year
Publication) (20,400), engineering and over 2.4 lakh
(18,650), hospitality jobs during July-
(16,100) and IT December 2012
hardware (15,600).
Interestingly, only
academics and
education sector
registered an upward
spiralling job
generation growth of
over 16per cent in the
first six months of the
current year

42
31.

Exhibit No. 7.0 – NASSCOM TOP 20 IT PLAYERS

Source: http://www.nasscom.in/industry-ranking

Explanation: the given table describes the ranking of top Indian IT Players, the data released
on the authenticated website of NASSCOM. Based on various factors like market share,
turnover, capitalization and financial parameters etc. were surveyed by the NASSCOM and
gave ranks accordingly.73

43
32.

Exhibit No. 7.1 - Best Employer 2011: Reaching Out to Retain – Attributes of ideal IT
companies

Explanation: the above given graph explores the qualities of an ideal company for an
employee as what an employee expects from its company & employer.77

44
33.

Exhibit No. 7.2 - Best Employer 2011: Preferred Employer

Explanation: the given table explains the preferred employer by the employees of the most
renowned Indian IT Companies by considering various factors during a survey conducted.77

45
34.

Exhibit No. 7.3 - Best Employer 2011: Managing Slowdown

Explanation: the above given table depicts the efficiency & effectiveness of the major IT
players of India and ranks given according to their management of resources during tough
times.77

46
 4. MARKET GROWTH OF INDIAN ECONOMY DURING RECESSION

RESULTS
AUTHOR’ TOPIC OF THE
S.No. YEAR KEY FINDINGS &
S NAME RESEARCH
CAUSES
A fewer can forecast
about the India’s
remarkable rise as a
global economic force,
Now India has
that one day the British
grown up as an
Luxury brands like
economy with
Range Rover and Jaguar
strong military
would be purchased by
India: Richer, forces and
Kamdar, an Indian Company. But
35. (2008)36 Poorer, Hotter, powerful
M. still India has shown its
Armed financial
stage of emerging power
policies to
even in tougher times
cope up
faced by the U.K. and
robustly with
U.S. India has restored to
slowdowns
the position it enjoyed
300 years ago as an
economic and cultural
power that has eclipsed
The impact of Recession
It becomes
on Business; is that it
very difficult
makes difficult for new
to enter into a
firms to enter into market
Recession and new industry at
because of high setup
Alzarouni, The Current the time of
36. (2009)2 costs and it will leads to
O. Economic Down recession
increase the Monopoly
Turn because of low
power of dominating
demand
larger businesses.
everywhere in
Recession results into
the market
declining the productive

47
 capacity and also during
tough times inefficient
firms will be forced out
of the market anyway
In 2009-2010 India faces The path
dramatically different toward a major
foreign policy challenges power role and
than it faced even ten status needs to
years ago. Similar to be paved with
other ascendant powers more than
such as China and Brazil good
but unlike smaller intentions and
powers, India must not be
only cope with a accompanied
transformed international by political
system and project the will and
India: Rising country's global institutional
Sinha A. & Power or a Mere aspirations, but also flexibilities
37. (2010)85 Dorschner Revolution of ensure that its emergence that can
J. P. Rising as a rising power transform
Expectation? responds to its domestic India’s
dilemmas and traditional
constraints. India’s emphasis on
actions and aspirations autonomy and
on the global stage have self-reliance
changed dramatically and new
toward greater activism ambitions into
and leveraging of its real power that
newfound economic is sustainable
strengths. despite of at the global
powerful pressures and level and
opportunities nudging yields crucial
India toward a greater benefits for

48
 role in the global system, India’s diverse
India must also attend to population
crucial capacity building
to mobilize its potential
and aspirations
Indian IT
industry was
badly hurt due
Indian companies has
to crisis in
How IT & lost export orders worth
USA and had
Telecom Rs. 1792 crores during
Sharma, to face worst
Businesses are August – October 2008
38. (2011)79 S., & time during
affected in the and were forced to lay
Sharma, A. global
Times of off 65000 workers;
downfall,
Recession maximum numbers from
because USA
IT & Telecom
was its major
outsourcing
destination
the period of four years Due to
(2007 to 2010) has been asymmetrical
very eventful for the response of
Indian Stock Market. investors on
During October 2008, positive and
Financial when the US mortgage negative news
Analysis on crises were unveiled, was in the market,
Arekar, K.,
39. (2011)4 Indian Stock by far the worst month will cause the
& Jain, R.
Market Volatility for investors. While the volatility in
during Recession returns were most Indian share
negative, volatility was market too.
highest for both Senses Which later
and Nifty. Therefore it has turned into
can be said that volatility effect of
was higher when the recessionary

49
 market is falling and period
vice-a-versa
The financial
Indian economy has
crisis in the
shown negative impact of
advanced
the recent global
economies and
financial meltdown.
likely to slow
Though the public sector
Recent Global down in the
in India including
Recession and developing
40. (2011)13 Bhatt, R.K. nationalized banks could
Indian Economy: economies
somehow insulate the
An Analysis could have
injurious effects of
faced a
globalization. And after a
recession and
long spell of growth, the
its direct
Indian economy was
impact on the
experiencing a down turn
IT Industry

50
41.

Exhibit No. 8 - Indian Economy during Recession

Explanation: the above given figure reveals the strength of Indian economy during recession
referring to its GDP growth, WPI and Repo Rate of RBI during 2008 and the after affects of
recession on Indian economy.34

51
42.

Exhibit No. 9 - Reversing Growth Recession by Indian Industries

Explanation: the above given graph explores the facts about the industrial growth of Indian
economy after recession or we can say the after affects of recession on Indian economy were
somehow good as well as bad. Both kind of reactions were there.72

52
 5. IMPACT OF RECESSION ON NON- IT SECTOR

RESULTS
AUTHOR’S TOPIC OF THE
S.No. YEAR KEY FINDINGS &
NAME RESEARCH
CAUSES
Approx. 83 percent
of responding Non
Profit Organizations
reported some level
It is but obvious
of fiscal stress
that recession has
during the targeted
hit almost every
Impact of the recessionary period.
Salamon, L. field of life either
2007-2009 However close to 40
M., Geller, professional or
Economic percent of
43. (2009)69 S. L. & personal in the
Recession on organizations
Spence, K. developed
Non Profit considered the stress
L. countries but not
Organizations to be ‘severe’ or
so badly in the
‘very severe’. In fact
developing
theaters and
countries
orchestras were
particularly hard hit
with a decline of
around 73%
An unorganised Due to crisis and
sector like Diamond downfall in
Organizing the
Industry has always exporting
Un-Organized?
been neglected by business hundred
The Rise,
the researchers. India thousand workers
44. (2009)62 Rao, I. Recession and
has risen to be the have lost their
Revival of the
world’s largest jobs because of
Indian Diamond
centre for cutting low demand for
Industry
and polishing of Indian Diamonds
diamonds and is one in the global

53
 of the highest market
foreign exchange
earners for the
country. It
incorporates
thousands of family
run units of different
sizes employing
more than a million
people, most of
whom have little
formal education
Management
education is at the
infant stage in India.
Industry and society
oriented approaches Though Crisis
of management management has
education in building to be something
Salve, K. Changing
the nation is as vital beyond the books
L., & Scenario of
as the imparting of in the
45. (2009)70 Raffey, Management
the quality education management
Education in
to the youngsters. institutions to
M. A. Recession
Dynamism and the learn and act for
trend to change and the future
the continuity of it perspectives
are pivotal in the
decision process of
management
education in India
Laing, R.O., Impact of the Identified the Recession has
46. (2010)48 & Mantel, Economic correlation between impose a bad
A.K. Recession on the a decline in GDP effect on almost

54
 Pharmaceutical and decline in every industrial
Sector pharmaceutical sector of the
consumption in the world either
European countries directly or
was moderate and indirectly and the
differed from quarter pharmaceutical
to quarter, though sector was also
the difference were effected up to
minimal. And does some extent
not affect this sector
globally severely.
But there were some
countries like –
Latvia, Estonia and
Lithuania who
showed a severe
decline in the
consumption of
pharmaceutical
products
Due to recession, the
Indian Govt. must
exports of tyre
think upon to
industry have been
waive off custom
severely impacted.
duty to nil on raw
China as a major
materials not
competitor, has
manufactured
announced revised
domestically like
export tariff rebate
Butyl Rubber,
Impact of on Rubber products
SBR, Polyester
Recession on the (including tyres)
47. (2010)38 Kaur, J. Tyre cord etc. in
Indian Tyre from 5% to 9%
order to reduce
Industry (w.e.f. 1/12/2008).
the import costs
Therefore the Indian

55
 Government should
also support the tyre
industry and provide
special duty free
credit equal to 5% of
value of exports
The impact of mass
media on leaders’
As people usually
and employees’
get information
psychological
on current and
contracts, as they
Facts, Rumours future economic
received and
& Perceptions: conditions
understand the
Shaffakat, The Impact of through media
media reports. Also
S., the Media on which directly
how the media
48. (2010)74 Burgoyne, Psychological affects their
transmitted
J., & Sim, Contracts in interpretation
information develops
D. Organizations about
and shapes
during unemployment&
organisational
Economic Crisis layoffs reported
members’ beliefs
by local or
and the impact of
international
recession on their
media
attitude and
behaviour
A relationship
between the CSR
Corporate Social CSR is
and recession is that
Responsibility, conventionally
both must be aware
Herzig, C. The Financial associated with
49. (2011)32 about the fact that
& Moon, J. Sector and the responsibility
business is
Economic of business for
responsible for its
Recession society
impact on society
and environment.

56
 And businesses are
accountable for these
impacts as well as
managed in the
corporation – society
interface. This paper
is specifically based
on the current
recession and the
role of CSR to be
played by the
financial sector for
reducing the severe
effects of crisis on
the society
Though by
All public and
traditional
private sector
marketing and
organizations
management have
passing through
tended to meet
Internal improbability times
external
Marketing: A and difficult times
customers &
Sustainable during the period of
markets, with an
Strategy for economic recession.
importance upon
Organisation And internal
attracting &
during marketing is
retaining
Dash, M., Economic emerging as an
customers with a
50. (2011)20 Padhi, S., & Recession innermost subject
profit motivation
Dash, M. matter of increasing
during
significance in the
recessionary
present state of
period & to make
affairs
quick strategy
51. (2011)9 Bechtold, Effective The risk perceptions Their reactions

57
 D., Steiner, Leadership in are driven by onto those
S., & Hui times of Crisis: individual perceptions
Tung, K. The Interplay of experiences and whenever the
Risk personal values. It is actual tough time
Perceptions, clear that culture will happens, how
Trust and have a significant they take actions
National Culture impact on how risks in the situation
are viewed and how like crisis and
sense making how much
messages crafted by proactive they are
experts & leaders depends on their
trust worthiness
Explored a study to
unveil the
performance of
selected mutual
funds during post
recession period i.e. The performance
Performance 2009 -2012, by of the mutual
Evaluation of applying Sharpe funds and other
Selected Open Ratio, Treynor Ratio instruments was
Ended Equity and Jensens alpha better even after
Funds for the measures to evaluate passing the
Post Recession the performance recessionary
Period: An based mutual funds, period, all of
Indian based on mean them did well and
Perspectives variance frame work gave an average
to estimate the output
selected mutual
Sahi, A., & funds scheme &
52. (2013)67
Pahuja, A. their performance
during the down fall
and pre as well as

58
 post recession period
Every segment of
Indian Capital
Market viz. primary
and secondary
markets, derivatives,
institutional Our market,
investment and today, is being
market recognized as one
intermediation has of the most
experienced impact transparent,
of these changes. The efficient and
volatility during the clean markets.
Economic
phase of economic Several
Recession and
recession i.e. 2008 techniques /
Volatility in
was high in the instruments are
53. (2013)65 Roy, S. stock Markets:
Indian market. The used by
Evidence from
two indices taken for academicians,
Indian Stock
the study confirmed policy makers,
Exchanges
that there is practitioners and
relationship between investors to test
the economic the extent of
recession and stock efficiency of the
market volatility. market.
Whenever there is
recession or
financial crisis the
stock market reacts
negatively thus
increasing the
volatility

59
 6. IMPACT OF RECESSION ON INDIA AND OTHER DEVELOPING ECONOMIES

TOPIC OF RESULTS
AUTHOR’S
S.No YEAR THE KEY FINDINGS &
NAME
RESEARCH CAUSES
A wider variety of
impacts of crisis can Though food
Impact of be expected from security and
Global country to country, nutrition depends
Financial depending on their on the incomes
Wiggins, and economic structure and local price
S., Keats, S. Economic and also marked by levels of food,
54. (2009)95
& Vigneri, Situation on differences in which is
M. Agricultural between middle and indirectly linked
Markets and low income with the global
Food countries. This is market
Security further depends on transaction of
the trade balance in any country
oil and foods
India and China are Because of
emerging market expanding
economies (EMEs) domestic
and moving through demands would
Financial
a transitional phase, ensure higher
Crisis and
which means that import demands
Its Impact
they are in the for its growing
55. (2009)81 Siddiqui, K. on the
process of moving economy and
Economies
from a closed thus limits the
of China and
economy to an open downfall in
India
market economy and developed
adopting neoliberal economies and
policies. And stated recovery of
that a ‘Decoupled developing

60
 Asia’ through its own economies
growth
Almost all the
advance economies
have gone through
the crisis of 2008 –
09, and emerging
markets like BRIC But now each
Impact of countries could not country is close
Global be able to avoid such to reach the
Paul, J., & Recession worldwide evils like mature mode and
56. (2010)61 Ichinoise, on global slowdown. doing well in
R. Developed Because a lot of the growth, even
and BRIC investors from US more rapidly
Countries withdrew huge than the advance
amount of money economies
BRICs stock market,
which made the
shrinkage of stock
market index in each
BRIC country
The black money has
been causing the Causing a
underestimation of slowdown in our
The Parallel
GDP in India as an economy, this
Economy in
enormous volume of has become a
India:
income is diverted to new threat for the
57. (2010)71 Sarkar, S. Causes,
this unaccounted Indian economy
Impacts and
sector. It resulted in in order to
Government
the diversion of calculate the
Initiatives
resources for the accurate GDP of
purchase of real the nation
estate and luxury

61
 housing which causes
a situation of
economic imbalance
The global recession
of 2008-09 has the
devastating effect on
the world trade. The
value of merchandise
exports, which had It is all because
registered a healthy of the
growth of over 15% competitiveness
in 2007 -08, fell and innovative
down by a massive strength of the
23% in 2009 (WTO BanglaDeshi
2010). The top 30 entrepreneurs
Exports
exporting countries along with the
from
of the world suffered duty free access
58. (2010)89 Taslim M.A Bangladesh
with a decline in their in all developed
during the
export ranging from countries (except
Recession
11% (Hong Kong) to US) and the most
40% (Saudi Arabia). importantly an
But Bangladesh’s abundant supply
revenues declined of cheap labour
only by 2% during has made it stand
2009 (recession in such tougher
period), may be times
because of the cheap
and inferior goods
especially the
apparels were
exported.
Shaikh, Global Indian economy has India may be in a
59. (2010)75
R.K. Economic been hurt by the better position

62
 Recession & global financial with quick
Its Impact recession. But RBI’s recovery and
on Indian decisions for the future growth
Economy appropriate use of a than many of the
range of instruments other economies
such as CRR, Repo / as Indian banks
Reverse Repo rates, did not have
SLRMSS and LAF significant
are in the right exposure to sub-
direction and taken in prime loans as in
time the USA
FDIs flow in India
such as: 1) FDIs
flows in India can
encourage and
organize the realty
sector and thereby
Efficiency in
also create better
funds
employment
management in
Impact of opportunities in this
India has
Global sector. 2) Technology
enriched the
50
Financial advancement is
60. (2011) Mamata, T. quality standards
Crisis on possible in
for housing
FDI Flows construction activity
sector in India
in India in India whether
and has proven
commercial or
as a safer place
residential housing.
to invest in
3) To create a healthy
and competitive
market environment
for both Indian and
foreign investors 4)
better infrastructural

63
 facilities are possible
with investments
from foreign
investors.
The financial phase
of the crisis led to
emergency
interventions in many
national financial
systems. As the crisis
developed into
genuine recession in
many major
. In the final
economies, economic
quarter of 2008,
stimulus meant to
the financial
revive economic
crisis saw the G-
Global growth became the
20 group of
Recession most common policy
major economies
61. (2011)60 Patil, K. V. and Indian tool. After having
assume a new
Economy: implemented rescue
significance as a
Economy plans for the banking
focus of
system, major
economic and
developed and
financial crisis
emerging countries
management
announced plans to
relieve their
economies. In
particular, economic
stimulus plans were
announced in China,
the United States, and
the European Union.
Bailouts of failing or

64
 threatened businesses
were carried out or
discussed in the
USA, the EU, and
India
The rapid economic
growth in India over
the last decade has
been clearly reflected There is a
in Indian Stock substantial
The Indian Markets. Further the change in the
Mandal, A.
62. Stock change in SENSEX behaviour of the
&
(2012)51 Market and behaviour during pre SENSEX and the
Bhattacharj
the Great and post recession – returns were
ee, P.
Recession outbreak period has declined in post
been observed, along recessionary
with other major period in India
stock indexes from
the US, Europe, Asia
and Latin America
The emerging Due to
economies likely to bankruptcy of all
be more at risk from the major
the euro zone crisis. financial
The Euro Especially those who institutions of
Massa, I.,
Zone Crisis have a significant developed
Keane, J.,
63. (2012)54 and share of their exports economies has
& Kennan
Developing to European crisis- resulted into non
J.
Countries affected countries. payments of the
Who export products due bills and
with high income further
elasticity and are investments in
heavily dependent on developing

65
 remittance, Foreign economies.
Direct Investment,
cross border bank
lending, and aids
flow from European
countries suffering
with crisis
Indian Economy has
shown negative
impact of the recent
global meltdown.
Though the public
sector in India,
The impact of
Global including
crisis was
Recession – nationalized banks
significantly
Impact of could somehow
different for the
Global insulate the injurious
64. (2012)19 Das, P. Indian economy
Meltdown effects of
as opposed to the
on the globalization as we
western
Indian are also part of
developed
Economy globalization strategy
nations
of neo liberalization,
there is a limit of our
ability to resist global
recession, which may
change into global
depression

66
65.

Exhibit No. 10.0 - Chindia Rising

Explanation: the above given figure depicts the future growth of two most emerging and
poerfully developing nations- India and China refering to their growth till 2030.90

67
66.

Exibit No: 11.0 - India and China are in Recession

Explanation: The above mentioned figure shows the strong economic growth of India &
China after recession but these two economies were also facing the harsh affects of crisis.
Though there position was far better and improved in comparison to the Western Countries.26

68
 7. RECESSIONARY IMPACT AND RECOVERY METHODS ADOPTED BY
INDIAN CORPORATE SECTOR

RESULTS
AUTHOR’S TOPIC OF THE
S.No. YEAR KEY FINDINGS &
NAME RESEARCH
CAUSES
The
combination of
these coincident
indicators, viz.,
The timings of
variable that
recession and
moves in
expansion of Indian
tandem with
business cycles is
aggregate
determined on the
economic
basis of a careful
activity is called
Dua, P., & Business Cycles consideration of
67. (2006)24 Coincident
Banerji, A. in India consensus of cyclical
Index, whose
co-movements in the
cyclical
broad measures of
upswings and
output, income,
down swings
employment and
generally
domestic trade that
correspondent to
defines the cycle
the periods of
expansion and
recession
respectively
Companies have Because of the
New Dimension been reorganizing huge layoffs by
of HR Role in and reengineering to the companies,
68. (2009)80 Shukla, A.
the Global reduce waste. And they need to
Recession there is a reduction rethink about
in human capital the optimum

69
 investments because utilization of the
companies are available
threatened by the resources now
global slowdown
The world collapsed
into steep recession
in the final quarter of
2008 with global real
Although India
World GDP dropping at a
has to face
Recession and 6% annual rate. This
minor effects of
Recovery: A V was undoubtedly the
global financial
or L?”, paper sharpest decline in
crisis but still
presented at the world output and
69. (2009)56 Mussa, M. there was a
fifth semi especially in the
downfall in its
annual meeting world of industrial
GDP growth
on Global production due to
and hopefully
Economic diminished demand
will recover
Prospects globally and it has
very soon
been forecasted there
would be an L-
Shaped recovery out
of it
A new trend tends to
happen in IT sector Virtualization
of India after facing and Open
Global the global Source Software
Economic slowdown. Trends are also possible
70. (2009)21 Deloitte Slowdown and like Verticalisation alternative
Its Impact on the of IT services as a solutions for IT
Indian IT Sector complete (total) sector after
solution to solve recovery from
business challenges. financial crisis
This sector is also

70
 eyeing at Remote
Infrastructure
Management
Services (RIMS) as a
big opportunity in
the coming years
Only industrial
recession of some
kind would not
affect the overall
growth prospects the informal
until the service sector of the
Global Crisis sector does not economy must
and the Indian shrink substantially. be considered
Economy – On a In addition he which absorbs
71. (2009)53 Marjit S.
Few pointed out that 90% of the total
Unconventional excessive liquidity work force who
Assertions may generates nullify the
bubbles in the actual recession
economy and distort impact in India
real rates of return
which may damage
efficient allocation
of capital
Economic and Organised a study to As all the
Social Impact of examine the impact developing
Global Financial of the global economies are
Amjad, R. Crisis: slowdown as it dependent on
72. (2010)3 & Din, U., Implications for folded during 2008- the developed
M. Macroeconomic 2009 on four major economies for
and South Asian their business
Development economies i.e., dealings ,
Policies in Pakistan, India, therefore almost

71
 South Asia Bangladesh and Sri all the
Lanka. And found developing
that with a sharp nations like
decline in demand India and
from the western Pakistan etc
economies the South have to bear the
Asian economies shock but they
saw a step downfall recovered very
in the export growth, smartly
with the exception of
Bangladesh and Sri
Lanka has witnessed
the highest decline
of 12% in 2009
If a firm survives
during recessionary For the Indian
period than it would firms, who
be able to survive in remain calm till
a depression too. the storm passes
Though many ideas and finally those
Impact of were given by author who take the
73. (2010)37 Kaur, H. Recession on for survival stock
India ultimately during immediately in
recession by those reinvest in a
firms who have been recession proof
able to save their business has
funds, who have not recovered
invested in fly-by- rapidly
night companies
Is Economic Recession provides Crisis making
Kumar, M.
Crisis Forcing both opportunity and them more
74. (2010)44 & Kumari,
Organizations to challenges to creative & how
R.
rethink their different they weight

72
 Talent organizations, talent issues
Management depending on the versus cost
Strategy – An intrinsic nature of issues to survive
Exploratory the organization.
Study of some Now organisations
Indian Firms are forced to rethink
about the talent
issues. The result
comes out of the
study is that talent
issues can’t be
ignored by the
organisations either
they like it or not
There are four However the
distinct government is
characteristics of passing a bill for
Indian economy that creating
soften the impact of hundreds of
crisis condition on special
India & they are its economic zones
Demographics, (SEZs) to attract
Global Exports, Regulations significant direct
74. (2011)59 Patil, G. K. Recession and and the informal investments
Indian Economy economy. India’s from overseas
demographics are and native
favourable because it multinational
is a young country corporations but
with low dependency on the other
ratio. The strong hand followed
regulatory strict guidelines
authorities have and policies
provided the foreign regarding the

73
 investors with a same
positive signal for
investing money
safely
Though the
This world is a globalization
global village now. has proven the
Financial trends have positive as well
become infectious in as negative
nature. Recession as affects too. But
Study of
well as recovery gets by the time the
Impacts of
Rastogi, S., penetrated in no time recessionary
Global
Johri, S., & from developed trends which
76. (2011)63 Recession on
Srivastava, nation to developing gets replicated at
Investment
V. K. nations. The open another places,
Pattern of
marketing and global
Households
investment pattern integration
has made the whole seems to be a
world to enter and curse than
invest in any part of benefit and the
an economy same happened
with India also
Global banking These reforms
system today stands revolutionized
at a juncture, where the Indian
A Comparative
risks and challenges economy in the
Study on
overweigh the era of
Manik, P., Investment
77. (2012)52 positive effort made globalization
& Kaur, R. Pattern of Indian
by banking system where India is
Banking in the
towards regaining performing
Global Era
growth and health. pretty well and
The banking sector strong banking
occupies a very system of India

74
 important place in has contributed
the country’s a lot towards
economy, acting as recovery of
an intermediary to Indian economy
all industries, from recession.
ranging from Indian banking
agriculture, industry has
construction, textile, direct impact on
manufacturing, and economy in
so on. Without any terms of
doubt, lot of improved return
development has on investment,
been taken place in decreasing
the investment nonperforming
pattern of Indian assets,
economy specially in deregulation of
case of banking interest rates,
industry return on capital
and many more

75
 78.

Exhibit No. 12.0 - Impact of recession on hiring & training employees

Explanation: this table depicts the model of how the HR department reacts during the hiring
and training process of employees at the time of recession in the economy.8

76
 8. IMPACT OF RECESSION ON EMPLOYEES OF IT SECTOR

TOPIC OF RESULTS
AUTHOR’S
S.No. YEAR THE KEY FINDINGS &
NAME
RESEARCH CAUSES
a crisis can reduce
the potential output
in the short and
medium term
through its adverse
impact on
investment. The
A short recession
Impact of the process of slow
would not affect
Current industrial
the pace of the
Economic restructuring and
Koopman, growth of potential
and deep-rooted
79. (2009)42 G., & labour force but a
Financial structural rigidities
Szekely, I. long and deep
Crisis on can also hurt the
recession can
Potential level and growth
discourage the
Output rate of Total Factor
potential of labour
Productivity (TFP)
in the medium to
long term by
locking resources in
(relatively)
unproductive
activities
The Great The global crisis of It is also called as
Recession of 2007 has cast its the ‘Lost Decade’
Verick, S. &
80. (2010)91 2008-2009: long shadow on the referring for
Islam, I.
Causes, economic fortunes developing
Consequence of many countries, economies like

77
 s and Policy resulting in what India and ‘Great
Response has often been Moderation’ for
called the ‘Great developed one like
Recession’. This has USA
come largely as a
surprise to many
policymakers,
multilateral
agencies, academics
and investors.
However, despite of
many govt.
interventions, the
global financial
crisis quickly
evolved into a
global crisis
Customers who
shop more
frequently are likely
to witness higher
The impact of
fluctuations for
recession could be
Impact of luxury items then
observed at every
Recession on for regular items. It
level of livelihood,
Buying indicates that
81. (2011)75 Sharma K. even on the basic
Behavior of customers shopping
needs of life.
Indian for luxury items
Though the change
Consumers may be postponed
was minor but still
in the times of
it is notable
recession but they
continue to shop for
regular items.
Moreover it was

78
 also mentioned in
the study that
Hypermarkets and
supermarkets
observed a greater
change in the
shopping behaviour
than the kirana
stores visiting by
the customers for
purchasing the
regular items
The economic
recession and its
impact as shrinking
jobs, pay cuts and
loss of perks owing
to the recession
have taken a heavy
Impact of toll on the mental In fact they need
Economic health of a large help from the
Recession on section of India’s professionals to
82. (2011)84 Singh, R. Employment high profile work handle the
in India – A force. It can be emotional stress
Critical understood in the and coming
Analysis way that the large forward from this
number of
youngsters were
facing the emotional
and psychological
problems especially
people with the age
group of 25-30

79
 years
Recession is the
time when HR
needs to come in to
its own to help
company during
Role and
tough times. When HR Department
Challenges
most of the Plays a very
for Human
organizations across important role in
Resource
industries are under every organization,
Singh, A., Professionals
tremendous pressure to overcome and to
83. (2011) 82
Khare, P., & during
to sustain, then the cope up with the
Singh, L. V. Global
HR needs to situation like crisis
Recession
develop and retain
talent amidst
retrenchment, salary
– cuts and fall in
budget
Crisis has proven to
be a coin with two
sides, that is
Indian IT – ITES
positive or
Global Crisis industry is mainly
opportunist for one
and Its dependent on USA
economy to take its
Impact on & UK, therefore
benefit like for
Indian India has to put up
Muthukumar emerging
Economy – with the job loss,
, T., economies. On its
An Analysis salary cuts and
Sirajudeen, other side, it is
84. (2012)57 and new opportunities
M. & danger or pessimist
Perception too, for finding
Temilenthi, for those economies
new markets
S. who are suffering
and going through
this horrible

80
 scenario. Though
for Indian IT
companies it is
estimated that
approximately
30,000 Indian jobs
were affected
immediately in the
wake of happening
in the US Financial
system
In the present era of
tough competition
and by overcoming
through the
slowdown period an
It becomes very
HR manager should
difficult to retain
take care of certain
and maintain the
Future HR things like: Refine
efficient work staff
Challenges and communicate
during the
in the Era of your employee
recessionary
Economic value proposition,
period. As there is
Crisis Strengthen
85. (2012)25 Dudeja, B. a panic spread all
communication at
over to lose own
levels of
job
organization, focus
on retaining high –
performers and get
performance based
reviews
Menon, P. & Recession The companies It is important to
86. (2012)35 Thingujam and job should introduce pay attention to
S. N. satisfaction certain job – maintain job

81
 of Indian enrichment as well satisfaction of
information as team- building employees, more
technology programmes for so in times of
professionals improving the job severe stress and
satisfaction level of strains for losing
the employees their job due to
during such recession
recurring business
cycles or tough
times
The Economic
Times Intelligence
According to the
Group (ETIG)
government’s
started an analysis
annual survey, the
with
unemployment rate
197companies of
in India increased to
BSE, looking at
3.3% in 2011-12
data from these
from 2% in 2009-10
Indian listed companies
and 2.3% in 2004-
Labour of IT on top-line
41
Kolamkar, 05. India’s
87. (2013) Journal (A and bottom-line
D.S. employed labour
Monthly growth, staff count
force increased to
Publication) and salaries. The
465.48 million at
197 companies, on
the end of March
an aggregate, have
2010 from 459.10
reduced their staff
million at the end of
by 3.2% between
2004-05 and 397
2007-08 and 2011-
million in 1999-
2012
2000

82
88.

Exhibit No. 13.0 - Best Employer 2011: Reaching Out to Retain – Top 10 Ideal IT
companies

Explanation: the above given graph explores the ranks of top 10 ideal IT companies of India,
who fulfil all the required parameters of the surveyors.77

83
 CONTROLLING MEASURES TAKEN BY INDIAN GOVERNMENT AND RBI

TOPIC OF RESULTS
AUTHOR’S
S.No. YEAR THE KEY FINDINGS &
NAME
RESEARCH CAUSES
Recession is a hydra
headed monster
which cannot be
conquered by cutting
one or two of its
heads. Rather it has
to be attacked in
many fronts It can be expressed
simultaneously like in terms of
production and price sentiment that
control, consumer whenever
Parekh, Recession goods and capital climate of
89. (1968)58
H.T. and Recovery goods, industry as resilience is
well as agriculture created it will
along with monetary gather in its
and fiscal aspects. own force to
Still many of the overcome
industries were
affected by recession
and Government has
to purchase their
products in order to
give a boost to the
economy
Impact of The steps taken by Indian Govt. has
Singh, J. & Global the Indian played a very
90. (2009)83
Yadav, P. Recession on Government during efficient role
Indian global slowdown in during global

84
 Economy order to save the slowdown and to
with Special embattled exporters save Indian
Reference to and the demand economy from its
India’s reduction from worst affects
Export overseas. The
government had
announced measures
like 2 percent
interest subsidy,
improved insurance
coverage and service
tax exemption on
foreign agent
commission. And
also announce an
assistance scheme of
Rs. 350 crores for
boosting up the
Export Credit
Guarantee
Corporation
(ECGC), affected by
crisis
Even if advanced The Indian banking
economies went into system has had no
Impact of
a downturn,
Global Direct exposure to
Financial emerging economies the sub-prime
87
Subbarao,
91. (2009) Crisis on will remain mortgage assets or
D.
Indian unscathed because of to the failed
Collateral their substantial institutions. It
and Damage foreign
has very limited
exchange reserves, off-balance sheet

85
 improved policy activities or
framework, robust securitized assets.
corporate balance In fact, our
sheets
Banks continue to
and relatively remain safe and
healthy banking healthy.
sector. The
But India's rapid
contagion of the
and growing
crisis has spread to
integration into the
India through all the
global economy
channels –
was the main cause
the financial of recessionary
channel, the real impact in India
channel, and
importantly, as
happens in all
financial

crisis, the confidence

channel.
During recessionary
period most of the
There are always
investors like to
Impact of arisen the issues of
invest their money in
Global corporate
governmental
Sharma, Financial governance etc that
78
securities and banks
92. (2010) R.B. & Crisis on have influenced
because they are the
Pandey, S. Investors investor’s
safest financial
psychology: psychology, as
avenues for
An Analysis where to invest and
deploying their hard
where not to invest
earned money.
During this recession

86
 several factors like
high volatility of
sensex, fluctuating
interest rates,
reduced economic
rate, subprime crisis
It is suggested for
utilising the ‘green
growth’ by
developing the
renewable energy, The successful
particularly in wind export – led
The Global power industry or industrializes have
Financial organic recycling been most
Crisis and the industry. And even adversely affected
Developing questioned that why by the fall in the
Alcorta, L. World: the developing rate of growth of
93. (2011)1 & Nixson, Impact on countries don’t go manufactured
F. and for ‘green export. The reason
Implications industrialization’ by for encouraging the
for the beginning and using green growth was
Manufacturin green technologies, an increase in
g Sector creating new demand and
markets and creating shortage of
a vicious circle resources
between the
environmental
protection and
economic growth
Impact of In the present global The impact of
Global scenario, India is the recession is turned
94. (2011)43 Kothari, N.
Recession on most promising and away by the Govt.
the FDI fast growing Intervention at

87
 Flows in economy in the accurate time and
India – A world. Due to helped the
Special liberalized rules for economy to grow
Reference to Foreign Direct with a smooth pace
Housing Investments (FDIs)
Sector in India, the real
estate has been the
attractive investment
proposal for both the
domestic and foreign
investors.
Indian Economy has
also been hurt by the
global crisis. But
India may be in a
The efficient
better position to
utilization and
survive an emerged
effective regulation
Global as best place for
of financial
Gotmare, D. Economic outsourcing, lots of
instruments by the
& Recession: opportunities for
95. (2011)29 RBI and Govt. has
Deshmukh, It’s Impact international trade,
saved our economy
P. on Indian cost stabilization in
from the worst
Economy the real estate market
impacts, which
because of the
happened in other
appropriate use of
economies
financial instruments
by the RBI and
moving ahead with a
seriousness
Impact of Indian Economy has The central bank
Global survived during should be given
96. (2012)93 Walia, S.
Economic global slowdown, by more autonomy to
Crisis on applying proper boost up the

88
 Indian coordination of the growth momentum
Economy: An monetary and fiscal to our country. So
Analysis policy in order to that such crisis
overcome through could be avoided
crisis. More
transparency is
required in the
process of setting
bank rate, repo rate,
reverse repo rate,
CRR, SLR etc
Indian Financial
system was
characterized by
barriers to entry,
control over
financial assets, high
transaction costs and
Growth & Moreover there
restriction on
Development were no price time
movements of funds
of Indian priority and hence
from one segment
Securities this exchange of
17
Chougule market to another
97. (2012) Market technology has
R. A. but after the
During Post both positive and
economic reforms
Economic negative direct
were initiated in
Reforms affect on the Indian
1991, a
(1991 - 2010) Stock Markets
revolutionary change
in the IT
(Information
Technology) has
changed the entire
face of Indian
Capital Market

89
 As per Narashiman
(1991) Committee
Foreign Banks were
also permitted to
enter Indian Bank
Industry but up to
certain limit and
there is time to time By using the
intervention of RBI ARMA
to take proactive Methodology it has
An Impact
steps for maintaining been analysed that
Analysis
the liquidity in the how the banking
Global
market, which has sector has
Recession on
favoured the displayed stability
the Indian
performance of for the last several
Banking
Indian Banking in years and has
7
Bajpai, A. Sector
98. (2013) recent financial helped India to
& Goel, S.
crisis. The huge cope up with tough
Indian Financial times.
Sector is having 82
lakh crores assets
and 60 lakh crores of
deposits which has
grown at around 12
– 15 percent per
annum

LARRDIS It is mentioned in the The govt.

report that various intervention is very
(Library Current measures undertaken important for the
(2013)49
99. and Economic by the Government up gradation of
Reference, Scenario regarding economic growth
Research, liberalization of FDI and also to conquer
Documentat in retail, aviation, the economic crisis

90
 ion and broadcasting and spread within an
Information insurance, economy and
Services) rescheduling of Indian Banking
general anti- Authority
avoidance rules performed very
(GAAR), decline in smartly to reduce
withholding tax on the recession
overseas borrowings impact on India
by domestic
companies, in order
to stick on fiscal
discipline for
economic growth
efficiently in future

The researcher has considered all the given studies as all were very important from the point
view of a research for this study but as a base the researcher has taken two studies for this
research work, as they have followed the same methodology for their studies as required in
this research and they were as follows –

(i) An – ARIMA Intervention Model for the Financial Crisis in China’s Manufacturing
industry by Chung, P.R.and Chan, L. S. (2009)

(ii) Current Employment Statistics seasonal adjustment and the 2007- 2009 recession by
Kropf, J. and Hudson, N. (2012).

91