Impact Of Recession On Indian Economy

Massage 2008-09 has been a challenging year for the global economy. While India hasn’t witnessed the kind of major mayhem witnessed in some major developed economies, it has certainly been impacted adversely. The Indian economy, by virtue of its strong macroeconomic fundamentals, has been one of the most resilient and fastest growing emerging economies of the world. Despite the sub-prime crisis and other events that have had negative consequences for most of other nations, India continued to grow at an impressive rate of 6.7% in the fiscal year 2008-09, albeit at a slower pace when compared to the earlier years. In the current financial year, it is expected that the Indian Economy will regain its growth momentum to grow at its recent trend growth rate of 8% to 9% over the past 5 years because of the stable policy environment, and internal growth stimuli notwithstanding the global factors like tighter credit conditions, slackening of demand, lower export and slow down in developed economies. The fiscal stimuli provided by the government and the rising fiscal deficit could potentially lead to inflationary pressures, if not handled adroitly. The focus during the current year will be on investments, both public and private, which will continue to increase as a share of GDP. Investments in agriculture, rural development, health, human resources and infrastructure will need to gain momentum to make growth more inclusive and balanced. Overall, the Indian Economy is slated to be one of the few in the world with positive growth acceleration in the current year. The international seminar on the topic, “Rebooting Strategies for Global Recession” has given a new dimension to the measures to outcome from global recession scenario and the right platform for sharing of ideas. Dr. Sandeep Ojha Assistant Professor KING SAUD UNIVERSITY College of Business Administration Al-Kharj, Kingdom of Saudi Arabia E-mail- [email protected]