There was a recession in United States in the late 2008 which carried away in the 2009 as well making an impact on the entire world. The inflation rate soared high with all the things expensive around the corner. A person’s earning power and purchasing power, everything reduced and in fact in some countries it ended.
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People started saving and cost cutting on almost all the objects and almost in all the aspects of life. The demand for the goods reduced and thus the supply which impacted on many jobs around the world. People were fired from the job without any prior notice. A majority of the population went unemployed. Every consumer started saving in the maximum way they can. There was a situation of panic in almost all the houses in different parts of the world. The stock market got crashed and so as the banks. Banks lost their clients, people started living and enjoying inside their house. Corporate reduced their expenses in the form of salaries and job cuts. People travelling in business class started travelling in economy. It was a major blow for the world all over. Money lost its value. Developed nations were the worst affected. No investors were ready to invest further money. But there was also few countries like china and India where this panicked situation did not occur. Although, it did reduced their balance of payment and trade but it did not made much impact on the people living in these countries. They were much relaxed in comparison with different parts of the world. India has developed its own domestic market which never tried to made an impact of the recession. Exports were reduced and so does imports, There were jobs cuts for the BPO’s but there were many alternatives to the people for the jobs. US economy did made around 60 percent of the impact on India but the impact were actually not seen anywhere in India.
India has developed its domestic market quite strongly. It has all the local tradesman and local customers. Although there were price rises in some of the few products but they were never taken seriously by the Indian people because the country is used to high and low prices because of the changing government on random basis. The living standard of people in India were still increasing at the time of the recession when the rest of the world were affected by the high rising costs of everything and were into the “Saving Mode”. In another words there was an economic downfall in India and could not be called as “Recession”.
The standard text book definition of a recession is:
“Negative Economic Growth for two consecutive quarters”.
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