The document summarizes the global financial crisis of 2008-2009 and its impact on India and the world. It discusses the causes of the crisis such as the boom and bust in the housing market and risky lending practices. The crisis led to a decline in global trade and GDP. In India, it impacted the stock market, exports, and various sectors. While India was initially impacted, it was able to recover better than many nations due to strong economic growth and domestic demand. The conclusion reflects on the effects felt worldwide and the post-crisis scenario.
3. CAUSES:
Boom and bust in the housing market
Speculation
High risk loans and lending practices
Securitization
Inaccurate credit rating
Government Policies
Central bank policies
5. IMPACT ON THE WORLD:
International Trade
Decline in growth
Collapse of USs financial sector
Eastern Europe
Severe loss of confidence in global economy
GDP of the Japanese Economy
Slowdown in Latin America and Caribbean
Asian Factories
6. IMPACT ON INDIA:
Impact on stock market
Impact on Indias trade
Impact on Indias export
Impact on Indias handloom sector, jewelry export and
tourism
Exchange rate depreciation
IT-BPO sector
FII and FDI
(contd.)