GLOBAL ECONOMIC CRISIS AND ITS

EFFECT ON INDIAN JOB SECTORS

WHAT IS GLOBAL ECONOMIC MELTDOWN?

Ans:- At present, the Global Economic Crisis started from the United States Of America (USA) and spilled all across the globe. This was first observed at September 2008 with the failure of several large USA based financial firms, but in a very short span of time, it became an international problem and evolved into a Global Credit Crisis.

WHAT IS DEFLATION?

Deflation is the opposite of inflation i.e. when prices of goods fall down due to lack of money in the market. In this situation, market is full of products but the consumers are less.

THE WORST AFFECTED AREAS ARE

1.Banking Sector2.Real Estate Sector3.IT Sector4.Production Plant

Sector5.Tourism Sector6.BPO Sector

. R.B.I. increased interest rate of various banks two times in a period of three months.

. In India sensex fell sharply from 20000 mark to 10000 mark.

BANKING SECTORS

REAL ESTATE SECTOR

One of the big sufferers in the global economic crisis.

IT SECTOR

.Biggest consumer of Indian Engineers and technocrats.

.IT layoff accelerated because the big companies who are the clients of IT industry are themselves in loss.

.The companies like TCS and INFOSYSare facing the huge impact of currenteconomic crisis.

IT COMPANIES JOB LAYOFF (upto Jan 2009)

1. INFOSYS 70002. TCS 30003. WIPRO 2000

THE WORST AFFECTED SECTORS

1.Banking Sector2.Real Estate Sector3.IT Sector4.Production Plant

Sector5.Tourism Sector6.BPO Sector

POSSIBLE SOLUTIONS

•Government should exercise strict control of money laundering and inside ruining.

•RBI should regulate issues of foreign exchange to companies during this time of crisis

•Important to promote domestic tourism.

•There is a need for new stability of the global financial system in which the voice of every nation is heard and their concerns taken into account.

•Government has to regulate and take a keen eye on private companies as we see in case of Satyam tragedy that only due to the mistake made by government and observing authorities, a large number of people have suffered losses.

CONCLUSION

Now it is clear that what is global economic crisis and what is its effect on job prospects. How job layoff accelerates and becomes a huge problem. The problem is really serious and for the sake of our educated unemployed youths it is must to take right step as early as possible. But alas government’s role is not satisfactory and quick. We have to just increase our economic growth and generate new employment opportunities.

According to future prediction made by WEF (world economic forum) as shown in graph that in next 15 years we are going to be an important nation in the field of economic growth but due to this huge unemployment of youth we can’t attain this mark. This is seriously a big trouble. So people have to careful and conscious in this field and government has to take necessary action as mentioned earlier to make India the dream country of Dr. A.P.J Abdul Kalam.

THANKYOU

DATA COURTESY

www.google.com

www.wikepedia.com

Times of India

Business Today Magazine