Recession and its impact on Indian economy

Pages: 624-626
Hemant (Department of Economics, G.S.S.S, Rattakhera, Ratia, Fatehabad, Haryana)

Throughout the history we have seen how economic recession has profound effect on the lives of people and on society. People lose their job, there is a decline in business activities, stock markets fall, housing market lose its charm and people become more cautious about their spending. The 2008 subprime mortgage crisis which led to market crash around the world stands as a reminder that downturn in economy is one of the toughest times to deal with. Economic recession is a phase where there is severe contraction in economic activities. Most economists agree that if economy shrinks for two consecutive quarters, then economy is considered to be under recession. According to National Bureau of Economic Research (NBER), “economic recession is significant decline in the economic activity spread across the country, lasting more than few months normally visible in real GDP, impacting growth in real personal income, employment, industrial production, wholesale and retail sales”. The present paper reviews on recession and its impact on Indian economy.