The Impacts in India are:

1. Reduced liquidity in the Indian economy
2. Reduced industrial output
3. Reduced job opportunities
4. Stock Market is lingering in the bottom
5. Real estate market has started to take a beating
6. Inflation has increased
7. GDP has come down and the GPD forecast for the next two quarters are only average


Effect of recession india
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Certainly there is a lot of effect of US recession on Indian economy. US recession has a chain effect as US imports many things from other countries which includes India. Primarily this has impact on export industry in India which includes textile industry, granite processing industry, tobacco exports and so on. It is said that already 5 lakh people have already lost their job in Indian textile industry.
This is not the end of the story. Now it has also started showing its direct effects on all other industries as well which include IT and ITES. Proactively many of the companies have started taking proactive steps to protect them self from the gloomy future. Many small companies were closed and ready to close, increasing the unemployed people. This will have lot of impact on peoples spending abilities and the supply chain effect carries forward.
But is every one in India are effect? Yes, but many people may not realize it or many not have any direct effects. Especially people living in cities will are more exposed to this and people in towns are less exposed to this situation. This is especially because number of employees working in private firms are susceptible to this situation and people working for govt. and self employed are less (these people will have impact only at later stages).
Whats the other side of the coin? Frankly its a overall loss to every one. But this is the right time for govt. to attract good talent to join in govt. organizations. That way govt can increase its efficiency and also help country to face this situation. But govt has to act quickly for filling already vacant positions and creating new jobs.


Recession reports - RBI sees prolonged effect in India

Warning that the worst may not be over yet, Mr D Subbarao Reserve Bank Governor has said the global economic recession may not only continue through 2009 but could prolong to the next year as well.

Mr Subbarao at the International Monetary Fund-World Bank spring meetings said that "Even with current levels of policy intensity, the trough of the global recession is not seen until the end of 2009 and could get pushed out further if the policy responses fail to gain traction."

Leading the Indian delegation to the International Monetary and Financial Committee meet in Washington, he said India is expected to grow at 6.5 to 6.7% in 2008-09 and the real GDP growth for 2009-10 would be about 6%.

A statement by RBI further quoted Mr Subbarao as saying that "The most frequently asked question today is whether the worst is behind us. While there are incipient signs of business confidence and consumer spending trying to gain toehold, rising unemployment, high inventories and financial stress weigh heavily on overall demand conditions."

He said that RBI's policy response was aimed at containing the contagion from the global financial crisis while maintaining comfortable domestic and forex liquidity as it launched three fiscal stimulus packages apart from other measures

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The global recession has affected the Indian Economy as well. The exports for November are down by 10%. The BFSI
(Banking, financial sector, Insurance) sector has taken a hit with the financial sector getting affected in US. The textile sector has also been hit with the export of textiles coming down in the recent months. Several jobs are in danger of being lost. There has been decline in the automobile sector as well.The months of November & December saw bike & Car sales down. Govt has announced excise rate cuts for the auto sector. Shipments have been lying in many ports in the country. Several automakers have announced production cuts. The credit availability has become difficult & the RBI has reduced rates to make the credit cheaper. The housing loan has become chaeper to help the real estate industry. The govt has announced various monetary measures to help the industry. With the general elections around the corner, the govt is taking many steps to improve the economy. The global petro prices are down hovering around $40. The govt has cut down the oil prices once in december & may come down further in the coming months. This will translate to more money in the hands of consumer & will improve the economy