INT. J. NEW. INN.

, 2012, 1(1), 210-214

ISSN:2277-4459

RECESSION AND RECENT COUNTER TECHNIQUES

Bhawna Jain1, Ankur Jain1, Yash Saini1
LIET,Alwar

ABSTRACT
Recession is define as significant decline in activity across the economy, lasting longer than a few months and in recent scenario we have witness downfall of all world economies from, it is visible in industrial production, employment, real income and wholesale-retail trade. All government are taking significant steps in controlling the economic condition, the process of each country definitely varies but the objective of each of them is to avoid the worse effect of this slowdown. There are varies strategy which can be adopted by not all the government but also by the general investors as to overcome this critical situation. The government keep on modifying its monetary, fiscal, foreign exchange, economic policy, banking policy so as to keep the GDP of country to keep on growing. The innovative steps have been taken by all the politician right from Prime Minister of Indian Dr Man Mohan Singh to President of America Barak H. Obama. The path of future is still very tough for all economies but we have to put our continuous efforts to make a balance economic condition worldwide

1. INTRODUCTION
A recession is a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales. A recession begins just after the economy reaches a peak of activity and ends as the economy reaches its trough. Between trough and peak, the economy is in an expansion. Expansion is the normal state of the economy; most recessions are brief and they have been rare in recent decades. The start and end dates are determined by the Business Cycle Dating Committee of the National Bureau of Economic Research (NBER). It is a popular misconception that a recession is indicated simply by two consecutive quarters of declining GDP, which is true for most, but not all recession. NBER uses monthly data to date the start and ending months of recessions. Indian scenario Prime Minister Dr Manmohan Singh remains focussed on seeing that the Indian economy does not get unduly affected by the adverse developments abroad. He has appealed to the industry and the country in general to turn the crisis in the world economy into an opportunity to ensure that India comes out of the global

crises with its fundamental unimpaired, protecting employment. What gives confidence and strength to the Indian economy is its sound financial sector with its wellregulated and well-capitalised banking system, the sustained growth in deposit accretion and credit flows, and assured safety for depositors, the global competitiveness of its manufacturing and services, high savings and investment rates and a comfortable level of foreign exchange reserves which could be drawn to make up for any shortfall in capital inflows. The Finance Minister Shri P Chidambaram has urged banks to lower interest rates, in the light of the steps taken by RBI both on liquidity and interest rate, and several public sector banks have already announced plans on reducing their prime lending rates. Banks have been asked to increase credit for productive purposes and ensure credit quality. RBI has also suggested to banks to restructure the dues. of small and medium enterprises on merits There is general expectation that inflation would continue to moderate - especially now that global prices of oil (though still volatile) and commodities have sharply declined from their high levels in the first half of 2008 - and RBI projects that the annual rate of inflation would be down to 7 per cent by March 2009. India can well maintain growth at not less than 7 to 7.5 per cent, as International Journal of New Innovations

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