Download - Global Financial Crisis Presentation
-
8/9/2019 Global Financial Crisis Presentation
1/15
-
8/9/2019 Global Financial Crisis Presentation
2/15
Introduction
We will try to understand the impactof the global financial crisis on theIndian economy in the light of the
recent happenings.
-
8/9/2019 Global Financial Crisis Presentation
3/15
Impact on the Indian Economy
The global financial crisis has alreadyaffected our economy on various fronts.The information gleaned from Businesspages of The Tribune, Chandigarh,between Oct. 1 and Nov. 22, 2008, points
towards the extent of the problem.
-
8/9/2019 Global Financial Crisis Presentation
4/15
The Key Pointers
Fall in Share PricesAfter gradual fall in theprevious weeks, the sensex
fell to 8510, on 27.10.08, thelowest in 5 years
Fall in Rupee
On 21.11.08, Rupee hitsrecord low of 50.20, againstthe greenback.
-
8/9/2019 Global Financial Crisis Presentation
5/15
The Key Pointers
Impact on Exports
Exports are likely to slide by
20 per cent of its target of $200 billion in 2008-09
Fall in Forex Reserves
Forex reserves dropped bynearly $8 billion in earlyOctober, to $284 billion
-
8/9/2019 Global Financial Crisis Presentation
6/15
The Key Pointers
FDI InflowGlobal meltdown may slow down FDIinflows.
Job LossAcross all sectors manufacturing,retail, realty, IT and BPO, bankingand financial services
Economic GrowthSlow down has begun and growthwill drop to about 7 percent, for the
first time in 3 years
-
8/9/2019 Global Financial Crisis Presentation
7/15
The Key Pointers
Impact on various industriesSteel manufacturers,
Textile Sector, Hosiery,
Sports Goods,
IT, ITeS, BPO, KPO,
Diamond Exports,Real Estate, and many others
have started feeling the heat
-
8/9/2019 Global Financial Crisis Presentation
8/15
Action by Govt.
SEBI eases Participatory-Note norms,Lifts 40 percent cap on overseas
derivative instruments
RBI injects 20,000 crore for MutualFunds
The CRR, the amount banks are
required to keep with the apex bank,
has been cut from 9 per cent earlier to
5.5 per cent in three tranches.
Short-term lending (repo) rate also
reduced
-
8/9/2019 Global Financial Crisis Presentation
9/15
Action by Govt.
Rs 25,000 crore against farm debtwaiver
A temporary 1 per cent reduction in
SLR announced last month would bemade permanent.
High-level panel to address industrys
woes
Market regulator SEBI is keeping
vigilant eye on short-selling and on
the settlement mechanism.
-
8/9/2019 Global Financial Crisis Presentation
10/15
Government SpeakPrime Minister
Growth Rate 7.5 to 8 percent
Country not immune to what happens in the world
Finance Minister P. Chidambaram
Adequate liquidity in the banking system
Advised banks to lend aggressively
Asked investors not to sell stocks in panic
Commerce and Industry Minister - Kamal Nath
Financial crisis may slow down FDI inflows.Planning Commission Dy. Chairperson - MontekSingh Ahluwalia
Global meltdown to hit growth
-
8/9/2019 Global Financial Crisis Presentation
11/15
Expert Speak
Dr Rajiv Kumar, Director and Chief Executive, ICRIER
A growth of not more than 7.8 per cent in the
present year.
Dr L.K. Malhotra, President, PHDCCIIndia may not be able to remain untouched by
the financial turmoil in the US. Exports from
India are also likely to be hit if major economies
go into recession.
Sajjan Jindal, President , ASSOCHAM
India will see downturn and it will be an uphill
task for the government to bring back the
economy on rails
-
8/9/2019 Global Financial Crisis Presentation
12/15
Lessons Learnt
oWeaknesses of structuredproducts and derivatives
o
Importance of Financialsupervision
oInter-agency coordination
required
oWe can not remain
insulated
-
8/9/2019 Global Financial Crisis Presentation
13/15
Whats in the store
As per a report prepared jointly byWorld Economic Forum (WEF) and
Confederation of Indian Industry
(CII), the global crisis will hit
India more in 2009. At the global level also, Olivier
Blanchard, the IMFs chief
economist has said that worst offinancial crisis yet to come andeconomic growth would not kickin until 2010
-
8/9/2019 Global Financial Crisis Presentation
14/15
ConclusionThe Indian economy is already under the
impact of global financial crisis.Government has taken various steps but as
of now there are no signs of recovery.
Share prices have steadily fallen, rupee has
lost ground to the dollar, exports have been
hit, various sectors of the economy have
seen decline in demand and even the Prime
Minister has gone on record to say thatIndia has to bear the pain.
The point is that we have to live with the
present scenario for some more time to
come.
-
8/9/2019 Global Financial Crisis Presentation
15/15
THANK YOU!!!