Datta Meghe Institute of Management Studies Sdmp Campus Atrey Layout Nagpur – 440022 (India)
Online published on 30 March, 2012.
Recession is the economy shrinking for two consecutive quarters with a decrease in the GDP (Gross Domestic Product). GDP is the value of all the reported goods and services produced by the people operating in the country. In economics, a recession is a business cycle contraction, a general slowdown in economic activity over a period of time for more than two consecutive quarters. During recessions, many macroeconomic indicators vary in a similar way. Production, as measured by Gross Domestic Product (GDP), employment, investment spending, capacity utilization, household incomes, business profits and inflation all fall during recessions; while bankruptcies and the unemployment rate rise.
In order to face the impact of recession organizations must concentrate on factors like Fiscal Policy & Monetary Policy of the government. Reasons behind recession must be ascertained like over-production, wrong price policy, decrease in demand due to obsolescence etc.
The countries operating in global market in the particular segment like automobile sector must be assessed and there strategically input must be studied. This will help to counter recession and take stringent measures to pass the period.
