IN IT SECTOR

Road map

• What is recession?• Causes of recession• How to know recession?• Impact of recession• How to come out of recession.

WHAT IS RECESSION?

Causes of recession

• Currency crisis• Energy Crisis• Under consumption• Over production• Financial crisis

CURRENCY CRISIS

ENERGY CRISIS

UNDER CONSUMPTION

OVER PRODUCTION

FINANCIAL CRISIS

IMPACT OF RECESSION ON IT SECTOR

The impact of Recession is unpredictable. The main effect of recession is in IT sector and is mainly related to the job loss and unemployment

How to come out of recession?

Corrective Steps Should betaken to come out of Recession

Important Point: Today, it is a market Economy

Producers;Can produce and

sell at their prices

Consumers;Can decide to

buy or not;

Government has 2 plans

Fiscal Policies

(By Govt.)

Monetary Policies(By RBI)

Government influences the economy by changing howit (Government) spends and collects money

RBI manipulates the available supply of money in the country

Fiscal Policies

Government influences the economy by changing how it (Government) spends and collects money

1] Tax cuts for businesses or for individuals

2] More Spending by Govt. to create jobs

3] Automatic fiscal policy; Unemployment Insurance

More moneyavailable forspending

Individuals getsalary and spendmoney

Some income tounemployed people to spend

Demand picksup; Market can recover;

MonetaryPolicies

Government manipulates the available supply of money in the country

1] Reduce reserve ratio

2] Lower the interest rates

3] Use its own reserved money to buy Govt. bonds

More moneyavailable for bankto give loans

Individuals takemore loan

It becomes anincome to Govt.to inject moneyinto the market

Demand picksup; Market can recover;

BIBLIOGRAPHY

• www.wikipedia.com• www.authorstream.com• www.slideshare.com

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