37 Hanuman Bothra - Is Recovery in Indian Economy Real

8/11/2019 37 Hanuman Bothra - Is Recovery in Indian Economy Real

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CONTEMPORARY ISSUE ON SEMINAR

A STUDY ON

“IS RECOVERY IN INDIAN ECONOMY

REAL?”

Session: 2009–11

Presented at

Submitted By: - Submitted To:-

Hanuman bothra Mr. Rajat Mendiratta

MBA Sem.



Acknowledgement

The beatitude! b"iss # eu$horia that a%%om$any su%%ess&u" %om$"etion any tas' (ou"d

not be %om$"eted (ithout the e)$ression o& a$$re%iation o& sim$"e *irtues to the $eo$"e

(ho made it $ossib"e.

So! ta'e my immense $"easure in e)$ressin+ a (ho"e hearted than's to a"" the &a%u"ty

members (ho +uided me a"" the (ay ma'in+ this $roje%t su%%ess&u".

t is my $ri*i"e+e to e)$ress a dee$ sense o& +ratitude and than's to Mr. RA,AT

M/RATTA &or $ro*idin+ us *arious in&ormation dire%t"y re"ated to $roje%t.

am a"so than'&u" to my &riends &or their +uidan%e # %oo$eration in this (or'.

e)tend my +ratitude and than'&u"ness to A$e) nstitute o& Mana+ement # S%ien%e.

/ate: Submitted By:

"a%e: ,ai$ur Hanuman bothra



Preface

The under"yin+ aim o& the seminar on %ontem$orary issue as an inte+ra" $art o& MBA

$ro+ram is to $ro*ide the students (ith $ra%ti%a" as$e%ts o& the or+aniation – (or'in+

en*ironment.

Su%h ty$e o& $resentation he"$s a student to *isua"ie and rea"ie about the

%on+ruen%ies bet(een the theoreti%a" "earnin+ in the $remises o& %o""e+e and a%tua"

&o""o(ed by the or+aniation. t +i*es the 'no("ed+e o& a$$"i%ation as$e%t o& the theories

"earnt in the %"assroom.

The seminar $roje%t in “IS RECOVERY IN INDIAN ECONOMY REAL?” is a %om$"ete

e)$erien%e in itse"&! (hi%h $ro*ide me (ith the understandin+. This has be%ome as

ins$irab"e o& my 'no("ed+e o& mana+ement bein+ "earned in MBA $ro+ram.



1. INTRODUCTION 1

2. DIFFERENT PHASE OF FLUCTUATION IN THE

ECONOMY

3

3. ARE DEFLATION AND DEPRESSION ONE AND THE

SAME?

4. EFFECTS OF DEFLATION !

5. Ind"a E#$n$%&' On t(e R$ad t$ Re#$)er&? *

6. Ind"an e#$n$%&' +etter ,-a#ed t(an %$st E%s .

7. Re#ent data are "nd"#at"n/ s(ar, re0$nd 11

8. Ra,"d trans2$r%at"$n 2r$% de2-at"$n t$ "n2-at"$n -"e-& 13

9. E#$n$%& %$)ed t$4ards ("/(er /r$4t( tra5e#t$r& 1!

10. H/e $,,$rtn"t& "n "n2rastr#tre se#t$r 1*

Contnt!



11. Ind"an e6"t"es' A -$4 r"s and ("/( retrn ,r$2"-e 17

12. 8reen s($$ts $2 re#$)er& "n Ind"an e#$n$%& 91

13. PREVAILIN8 SITUATION IN INDIA 9:

14. MEASURES TO RECTIFY 97

15. CONCLUSION 31

16. +I+LIO8RAPHY 39

INTRODUCTION'



"# In$%&n 'ono() no* +&'%n, & #'t%' '#&--n, %n t# +o( o+ !%(/-t&no/! ++'t o+ %n+-&t%on

&n$ $+-&t%on %n $%++nt &t ! o+ t# 'ono()."#%! (&) &tt%/t$ to t# *o!t ,-o&-

'!!%on t#&t #&$ t&n -&' %n t# &!t 75 )&! &++'t%n, !-) t# #%,#-) $-o$

n&t%on!. /t t# (&o %(&'t +-t on ot (-o)(nt %n$/!t%&- ,o*t# &n$ &!!t %'! %nIn$%& %! !nt%n, &t# & 'on+/!%n, !'n&%o !#o*%n, %n+-&t%on&) !!/! &n$ $+-&t%on&)

tn$ !%(/-t&no/!-).

"# +&'t #&! &-!o n 'on+%($ ) t# ,on(nt! '#%+ !t&t%!t%'%&n &n$ -&$%n, +%n&n'%&-

!%' -% o-$(&n !&'#! t#&t In$%& *o/-$ +&' $/'t%on %n ,n&- %' -- $/ to t#

$o%n, $(&n$ &n$ #%,# &! ++'t !/-t$ '&/! o+ t# ! %n+-&t%on&) tn$ t#&t #&!

n %n %!tn' %,#t +o( 2008.

"# 'ono() o+ In$%& %! &! $%! &! %t %! -&, *%t# & n/( o+ (&o !'to! %n'-/$%n,

(&n/+&'t/%n, %n$/!t%! &,%'/-t/ tt%-! &n$ #&n$%'&+t! &n$ !%'!. A,%'/-t/ %! &

(&o 'o(onnt o+ t# In$%&n 'ono() &! o 66: o+ t# In$%&n o/-&t%on &n! %t!

-%-%#oo$ +o( t#%! &&.

;o* t# !%' !'to %! ,&t-) &n$%n, &n$ #&! !t&t$ to &!!/( &n %n'&!%n,-)

%(ot&nt o-. "# +&'t t#&t t# In$%&n !&%n, o/-&t%on %n In$%& %! ,o*%n, ) t# $&) (&n!

t#&t In$%& #&! 'o( & #/ o+ o/t!o/'%n, &'t%%t%! +o !o( o+ t# (&o 'ono(%! o+ t#

*o-$ %n'-/$%n, t# <n%t$ =%n,$o( &n$ t# <n%t$ St&t!. O/t!o/'%n, to In$%& #&! n

%(&%-) %n t# &&! o+ t'#n%'&- !/ot &n$ '/!to( !%'!.

In ,n&- t# In$%&n 'ono() %! 'onto--$ ) t# ,on(nt &n$ t# (&%n! & ,&t

$%!&%t) t*n t# %'# &n$ t# oo. R&n$ ) t# '#&n, &t o+ t# <n%t$ St&t! Do--&

t# In$%&n 'ono() %! t# t*-+t# -&,!t %n t# *o-$.

In >/'#&!%n, >o* >&%t) D> t# +%,/ +o In$%& *&! 1.5 t%--%on <S Do--&! %n 2008. "#

'&%t& %n'o( o+ In$%& %! 4542 <S Do--&! %n t# 'ontt o+ >/'#&!%n, >o* >&%t). "#%! %!

%(&%-) $/ to t# 1.1 %--%on o/-&t%on o+ In$%& t# !'on$ -&,!t %n t# *o-$ &+t C#%n&. Inno(%n&- t(! t# +%,/ 'o(! $o*n to 1089 <S Do--&! &!$ on 2007 +%,/!. A''o$%n, to

t# o-$ &n In$%& %! '-&!!$ &! & -o*@%n'o( 'ono().

R'nt tn$! #& !n In$%& ot%n, t# !%'! o+ & n/(o/! %n+o(&t%on t'#no-o,) I"B

o+!!%on&-!. I" o+!!%on&-! #& n !o/,#t +o t#% t%! %n !o+t*& !o+t*&

n,%n%n, &n$ ot# +%n&n'%&- !%'!. "#%! #&! n o!!%- &! & !/-t o+ t# #%,# !%-- --!



o+ In$%&n I" o+!!%on&-!.

Ot# &&! *# In$%& %! 't$ to (& o,!! %n'-/$ (&n/+&'t/%n, 'on!t/'t%on o+

!#%! #&(&'/t%'&-! &%&t%on %ot'#no-o,) to/%!( n&not'#no-o,) t&%-%n, &n$

t-'o((/n%'&t%on!. o*t# &t! %n t#! !'to! & 't$ to %n'&! $&(&t%'&--).

O t# )&! t# In$%&n ,on(nt #&! t&n &n 'ono(%' &o&'# t#&t #&! n %n+-/n'$

%n &t ) t# So'%&-%!t (o(nt!. "# In$%&n n&t%on&- ,on(nt #&! (&%nt&%n$ & #%,# &n$

&/t#o%t&t% -- o+ 'onto- o 't&%n &&! o+ t# In$%&n 'ono() -% t# &t%'%&t%on o+

t# %&t !'to +o%,n $%'t %n!t(nt &n$ +o%,n t&$.

It (&) o!$ t#&t %n !%t o+ t# t(n$o/! $&t &o/t t# /!t%+%'&t%on o+ t#

%&t%&t%on o+ %n$/!t%! t&$%t%on&--) o*n$ ) t# ,on(nt t# o'!! o+ %&t%&t%on

#&! !t%-- 'ont%n/$ &t & !t&$) &'.

On o+ t# (&o '#&--n,! +o t# In$%&n 'ono() o t#o! *#o & !on!%- +o

o&t%n, %t %! to (o t# 'ono(%' %n/&-%t%! t#&t & !t%-- !%!tnt %n In$%& &+t %t!

%n$n$n' %n 1947. >ot) %! !t%-- on o+ t# (&o %!!/! &-t#o/,# t#! --! #& $o$

!%,n%+%'&nt-) %n 'nt )&!. A! o++%'%&- !/)! %t #&! n o!$ t#&t %n t# 2004 &-(o!t

27: o+ t# *o%n, In$%&n o/-&' *&! -%%n, -o* t# ot) -%n.

>ot) %! & '#&--n, t#&t! 'o(%n, %n'&!%n,-) %(ot&nt %n -&t%on!#% to t# &-&(%n, &t

o+ n* %t#!. "#%! %(-%! t#&t (o &%$ '#&n, o %t# 'onto- o-%'%! -% t# On

C#%-$ o-%') %n C#%n& & n$$ to $/' t# n/(! &++'t$ ) ot) %n t# &!t In$%&n

'ono().

DIFFERENT PHASE OF FLUCTUATION IN THE ECONOMY'



"# ,n&- +-/'t/&t%on! -%-) to #&n %n &n 'ono() o&$-) '&n $%%$$ %n to /*&$

tn$ '&--$ %n+-&t%on o $o*n*&$ tn$ no*n &! $+-&t%on. "#%! #&! ,ot !o( !/$%%!%on! &-!o

t#&t %! !t I--/!t&t$ +o--o*%n, $%&,&(F

Y D

A A

C E

G

O H

In t# &o ,&# OY !nt! Y &%! t#o/,# -- o+ /!%n!! &'t%%t) OH !nt!

&%! t#o/,# N/( o+ )&!. Go( A to t# ,&# !nt DE>RESSION to C

!nt! REGLA"ION C to D !nt! INGLA"ION D to E !nt! DISINGLAC"ION

&n$ E to G !nt! DEGLA"ION.

In+-&t%on %! & !t&t %n *#%'# &-/ o+ (on) %! +&--%n, &n$ %'! o+ t# 'o((o$%t%!

&%!%n,. "oo (/'# o+ (on) %n '%'/-&t%on 'o(& to too -%tt- ,oo$! o$/'$ -&$! to

t&o$%n&) %n'&! %n %'! &n$ &no(&- %n'&! %n t# /&-%t) o+ /'#&!%n, o*. "#

o'!! o+ !%n, t# In+-&t%on&) tn$ *%t#o/t '&/!%n, /n(-o)(nt %! '&--$ $%!%n+-&'t%on.

/t %+ t# %'! +&-- +o( t# -- o+ +/-- (-o)(nt %t %! '&--$ $+-&t%on.

D+-&t%on '&n tt $!'%$ &! & $'-%n %n t# %' -- &n$ !#%n&, o+ /'#&!%n,

o* 'ont%/t%n, '%o'&--) to &'# ot# -&$%n, to & !%t/&t%on o+ $%!/%-%%/(. %t %! t#

&'t oo!%t o+ %n+-&t%on #&%n, t# !!nt%&- +&t/! o+ +&--%n, %'! $/'$ (on) !/-)

&n$ /n(-o)(nt. #n &'t%on %! t&n / +o( $!!%on to t# +/-- (-o)(nt -- %t %!

'&--$ +-&t%on o 'onto--$ In+-&t%on.



ARE DEFLATION AND DEPRESSION ONE AND THE SAME?

D+%n%t-) not #n t# !/-) o/t!tt'#! t# $(&n$ $+-&t%on o''/! *#&! $!!%on %!

&!!o'%&t$ *%t# & ,-oo() %o$ t#&t %$! $/ to o!t *& ++'t! $+%'%t /$,t &n$ t#%n++%'%n') o+ t# on(nt to (t %t o/t t'J.. D/%n, $!!%on t# -- o+ 'ono(%'

&'t%%t) 'o(! t(-) -o*. >%'! +&-- o+%t (&,%n! $'&!! +%(! %n'/ -o!!! &n$

'-o!/ o+ /!%n!! 'o(! & 'o((on +&t/ &n$ t# /-t%(&t !/-t %! /n(-o)(nt &n$ &--

o/n$ !!%(%!(.

;HAT IS DEFLATION?

D+-&t%on %! & 'ont%n/o/! $'&! %n t# ,n&- %' -- o+ ,oo$! &n$ !%'!. #n t# &t

o+ In+-&t%on $%! -o* o 'nt t# &-/ o+ (on) %n'&!! &/to(&t%'&--) -&$%n, to

$'&! %n t# %' -- o+ ,oo$! &n$ !%'!. It %! & &&$o%'&- #no(non *#%n

In+-&t%on&) tn$ $/'! t# &-/ o+ (on) o & %o$ o+ t%( /t $+-&t%on %n'&!! t#

!&(.

D+-&t%on nt! (ont&) o-%') +o( !t&%-%%n, t# 'ono() $/ to -%/%$%t) t& %n

*#%'# /)! *%-- #o&$ '/n') &t# t#&n %n!t %n !o-%$ !'/%t%!. D+-&t%on %! '&/!! ) &

!#%+t %n t# !/-) &n$ $(&n$ '/ +o ,oo$! &n$ !%'! &t%'/-&-) & +&-- %n t# &,,,&t

-- o+ $(&n$. "#%! '&t! o & %o$ o+ t%( & $+-&t%on&) !%&- *# &! $'&! %n

%' -&$! to -o* o$/'t%on *#%'# %n t/n -&$! to -o* *&,! &n$ $(&n$ *#%'# -&$! to &

(on!to/! '%'- %n *#%'# t# o-( +$! %t! o*n '&/!.



EFFECTS OF DEFLATION'

D+-&t%on #/t! t# 'ono() (/'# (o t#&n In+-&t%on %t %! $/ to t# &!on t#&t $/%n,

In+-&t%on &-/ o+ (on) $'&!! +o--o*$ ) & %! %n ,n&- %' -- t#) %n'&!%n,t# /'#&!%n, o* o+ 'o((on o- t#&t -&$! to (&t &n!%on t#) t#%%n, t#

/!%n!! %n ) +%-$. /t %n $+-&t%on &-/ o+ (on) %n'&!! -&$%n, to +&-- %n ,n&- %'

--. Con!/( o!ton n$%t/ #o%n, t#&t t# %'! *%-- 'o( '#& ,o%n,

+o*&$. "#%! &++'t! +%(! *#o '/t o -o!!! t#) '/t&%-%n, t# /'#&!%n, o* &n$

'&t%on o+ $(&n$. Ko -o!!! & (o/nt%n, /%'-). On' t# 'on+%$n' %! $%!t/$ t#

'on!/(! *%-- !t%'t &-- t#% 'on!/(t%on %n o$ to %n'&! t# !&%n, +o n& +/t/. "#

!%t/&t%on %! n+%'%&- to t# o- *#o #o-$ -%/%$ '&!# t#&n t# oo*! &n$ #o-$ o+ +%$

&!!t!. "#/! $+-&t%on -&$! to n,&t%-) &! %t $%!'o/&,! !n$%n, &n$ %n!t(nt %n o$ to

#o-$ -%/%$ '&!# +o & tt +/t/.

A 'ont%n/o/! $o*n*&$ (o(nt %n t# ,n&- %' -- $/ to t# t(o&)

%o$ o+ $+-&t%on -&$! to & +&-- %n &!!t %'! &! t# 't&t%on o+ 'on!/( ,o! /. "#%! %n

t/n &++'t! t# '$%t '#&nn- &! t# &-/ o+ 'o--&t&- $'&! (&%n, t# &n! $%!%n'-%n$ to

-n$. "#%! &++'t! t# %n$/!t) +/t# (o &! %t 'ont! t# t(o&) #no(non %nto & (o

(&nnt on.

"#%! (&) '&/!$ ) t# 'on!t&nt #&n%n, o+ !/-) o+ (on) ,o%n, $o*n &n$ t#

&&%-&%-%t) o+ ,oo$! ,o%n, /. "#%! %! !'%&--) & no(&- 'on$%t%on %n & 'o/nt) *# t# &t

o+ %n'&! %n t# !/-) o+ (on) %! not o!%t%-) 'o-&t$ to %t! o/-&t%on ,o*t#. ;n'

o%o/!-) t# &&%-&%-%t) o+ (on) !on +&--! (&%n, %t (o !'&'. /t t# *o!t

!%t/&t%on %! t#&t t# /'#&!%n, o* o+ &'# /n%t o+ & '/n') %! %n'&!%n, $/ to t# +&'t

t#&t t# &&%-&%-%t) o+ ,oo$! %! ,o%n, / 'on!t&nt-) &''o(&n%$ ) & +&-- %n t# o&-- %' o+

,oo$! &n$ !%'!.

In & '$%t &!$ 'ono() -% In$%& & +&-- %n (on) !/-) &++'t! $%'t-) t# 'nt&, o+

-&$%n, &-!o. A! $(&n$ +&--! %'! &-!o +&-- &++'t%n, t# o+%t&%-%t) o+ t# +%(!. #n t#

+%(! & -%/%$&t$ $/ to ! -o!!! &n! &''/(/-&t Non +o(%n, A!!t! N>A!B

*#%'# %n t/n &++'t t# '$%t '&&'%t) o+ t# &n! &! t#) $o not #& (on) to -n$. #n t#

!%t/&t%on !%!t! +o & ) -on, t%( %ntn&t%on&- t&$ ,t! $*%n$-$ +%n&--) -&$%n, to & !%!

o+ &n +&%-/!.



"# 'on!t&nt +&--%n, %'! -o* o$/'t%on &'/t /n(-o)(nt &n$ &$o*n o+ !&-

/!%n!!! ,n&t & +-%n, o+ $%!'ontnt(nt &(on, o-. "# /n(-o)(nt o- *%--

'o( & (n&' %n t# !o'%t) '&/!%n, (o&- $,&$&t%on t#+t &n$ %-+&, '&t%n,

o-(! o+ -&* &n$ o$. "#/! t# !o'%&- o-%t%'&- &n$ (o&- -%+ (&) &++'t$ $&!t%'&--).

Ind"a E#$n$%&' On t(e R$ad t$ Re#$)er&?



"o In$%&n 'ono(%' &$%! S/!# "n$/-& 'nt-) ot$ t#&t t# n&t%on! 'ono() 'o/-$

on t# &t# to 'o). "#%! '&( *%t# t# R! &n o+ In$%& RIB '/tt%n, t# !

/'#&! &t to 3.5: &n$ t# /'#&! &t to 5:.

Ot# o!%t% !%,n! * & $'-%n %n %n+-&t%on &n$ & %! %n '& !&-! %n G/&). C& !&-!

/($ 22: -&!t (ont# 'o(&$ to t# !&( (ont# -&!t )&. "#%! %! $!%t t%,#t '$%t &n$

+& o o '/t! /t '&n -&%n$ ) -o* -n$%n, &t! o++$ ) &n! &n$ t& '/t! &!!$

&-on, ) +%(!.

“So( +%n&n' #&! !t&t$ +-o*%n, %nto t# (&t” So'%t) o+ In$%&n A/to(o%- M&n/+&'t/!

$%'to ,n&- D%-% C#no) &nno/n'$ “/t not %n & !%,n%+%'&nt *&) +o t*o *#-! &n$

'o(('%&- #%'-!. E)on %! +o'/!%n, on '&!.”

"n$/-& n *nt !o +& &! to !&) t#&t t# In$%&n 'ono() *&! &o&'#%n, %t! otto( n*!

) %n!to *&nt! to #&. ; &-!o &$$$ t#&t &n! & %n, too 'on!&t% &n$ !#o/-$

!on$ to 'nt '/t! %n t# $o!%t &t *%t# -n$%n, &t $/'t%on!. "#%! !o/n$! -% &n

&o%&t &'t%on /t /nt%- &- !/!t&%n$ ,o*t# #&n! %t *%-- $%++%'/-t +o &n! to

(& !/'# (o!.

o-$(&n S&'#! +o'&!t t# RI to '#o t# '&!# ! &t%o CRRB ) 150 &!%! o%nt! ) t#

n$ o+ K/n 2009. "# CRR %! t# 'nt&, o+ '&!# $o!%t! &n! n$ to #o-$. "# CRR %!

no* &t 5.25:.

R,&$%n, &$$%t%on&- ! o &t '/t! & o-$(&n S&'#! !o!(&n 'o((nt$ “...%t *%--

o-%t%'&--) %n$%nt +o t# RI to '/t t# &$(%n%!t$ &t $/%n, &n -'t%on &n$

$/'%n, t# ! o -o* t# !&%n,! &t *o/-$ #/t &n o+%t&%-%t).”

So+t*& &n$ /!%n!! o'!! o/t!o/'%n, >OB !'to! #& &-!o %n'$ to/-! /t

Moo$)! 't! In$%& *%-- 'ont%n/ to & ,-o&- o/t!o/'%n, -&$.

“In$%& *%-- (&%n & to o/t!o/'%n, $!t%n&t%on '&/! o+ %t! t'#@!&) &n$ En,-%!#@o+%'%nt

/&n *o+o' *#o! *&,! & (/'# -o* t#&n t#% *!tn 'o/nt&t!” !&%$ S#(&n

C#&n +o( Moo$)! 'ono().'o(.

"# >O ot &n$ !o+t*& !'to %n In$%& %! *ot# 40 %--%on *%t# &-(o!t t*o@t#%$! o+ %t!

/!%n!! 'o(%n, +o( t# <S. No* *%t# & (&o <S !-o*$o*n t# %(($%&t ++'t! & %n,

+-t %n t# >O &n$ !o+t*& %n$/!t%! %n In$%&.

In$%&! 'ono() t# t#%$@-&,!t %n A!%& ,* 5.3: %n t# D'( /&t %t! !-o*!t &t %n



!% )&! !/! t# 9@10: ,o*t# no)$ %n t# &!t t# )&!.

"# 'ono(%' to/-! #& !/-t$ %n !%,n%+%'&nt *&, &n$ o '/t! &n$ n !/-t$ %n &

'$%t + %n In$%& %n O'to 2008.

Lar/e st"%-s "s 0e"n/ ,r$)"ded 0& ,$-"#&%aers ar$nd t(e /-$0e<<<

In"t"a- s"/ns $2 re#$)er&'

-o&- -&$%n, %n$%'&to! >MI t'B !#o* t#&t ,-o&- %n$/!t%&- o$/'t%on ,o*t# %! !t

to t/n o!%t% %n 309.

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Ind"an E#$n$%& 91 O)er)"e4' De)e-$,%ent "n t(e 8-$0a- E#$n$%&

P$st Re#ess"$n

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E#$n$%"# Pr$s,e#t F$r Year 91

-o&- 'ono() %! !(! to &n$%n, &+t & 'nt !#o'. In$%&n E'ono() #o* /!t +-t t# -o* o+ t# ,-o&- 'ono(%' '!!%on &n$ t# &- 'ono(%' ,o*t# #& !n &!#& +&-- +o--o*$ ) t# -o* ot! '&%t&- o/t+-o* &n$ 'oo&t !t/'t/%n,. It %!

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Ind"aGs E#$n$%"# Ot-$$ Pr$5e#t"$n

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In2-at"$n D"re#t"$n



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%!%n, $(&n$.

Ind"a E#$n$%& 91 O)er)"e4

In o$ to t# 'ono(%' ,o*t# $/%n, t# t%( o+ *o!t '!!%on G$&- &/t#o%t%! %nIn$%& #&! &nno/n'$ t# !t%(/-/! &'&,! to o@/ t# 'ono(%' ,o*t#. "o +%n&n' t#!t%(/-/! &'&,! In$%&n on(nt #&! &%!$ o 100 %--%on o t# -&!t +o/ /&t! %n& *&) to +%n&n' t# !t%(/-/! &'&,. Co/nt)! >/-%' $t &''o$%n, to t# -&t!t $&t& #&!oo($ to o 50: o+ t# tot&- D> &n$ In$%&! Cnt&- &n R! &n o+ In$%& #&!!t&t$ %nt%n, n* '/n') not!.

Cnt&- on(nt Dt

%n R!. Co! 10 M%--%onB 3 2008 3 2009 : o+ D> >/-%' Dt S/( o+ 1 &n$ 2B 2099286.23 2505450.74 50.71:1. Etn&- Dt 237351.77 294941.672. Intn&- Dt 1861934.46 2210509.07

o%n, +o*&$ In$%& *%-- ! !#& %! %n !/-) !%$ %n+-&t%on &+t t# ++'t o+ -&,,on(nt oo*%n,! %nt%n, o+ n* '/n') not! %! %n +oo$ %'! $/ to #/, ,& %n$(&n$@!/-). Int!t &t! *%-- &-!o 't$ to %! &**&$ &! t# 'nt&- &n *%-- t& '&/t%on&) (&!/ to 'ont&%n %n+-&t%on &t &n$ &n$%n, (on) !/-).

Go t# /%t) (&t! %n!to! & !t%-- %n & /!t +o & #%,# t/n &n$ t/n$ $o*n t#%%n!t(nt! %n on(nt on$!PS'/%t%!. "# & -ot o+ (on) *#%'# & !t%-- &&%-&- to&$%-) %n!t %nto t# /%t) (&t!. In$%&n +%n&n'%&- (&t! 't$ to &n,@o/n$ &! t#+& o+ #%,# &-/&t%on *o/-$ t# 'on'n +o & !ot *#%-. Moo o-&t%-%t) %! 't$ to'o( $o*n &! t# (&t t%(%n,! #&! n tn$$ ) &n #o/ %n &&--- to t# ot# A!%&n/%t) (&t!. "#%! *%-- #- t# In$%&n (&t! to #%t n* #%,#! *#%'# * #& n

*&%t%n, +o (o t#&n t*o )&!. "# %! no t& 'on'n on t# +ont o+ /%t) (&t! &! t#E/%t) no*&$&)! 'on!%$$ &! t# !t &!!t '-&!! to %n!t %n t# (&%n &!on *o/-$ t#o!t&t$ otnt%&- o+ '%o/! (t&-! -% o-$ &n$ S%- *#%'# #&! !n & !#& &--) -&!t)& %n & t%( o+ ,-oo() 'ono(%' %'t/.

Sta0"-"t& "n t(e 8-$0a- E#$n$%& Means E>,ans"$n $2 t(e Ind"an E#$n$%&



A-- o+ /! #& !n & /n'$nt$ ,on(nt %ntnt%on $/%n, t# 'ono(%' '!!%on )*&) o+ &nno/n'%n, #/, &(o/nt o+ !t%(/-/! &'&, +o t# 'ono() to o@/ $o(!t%'$(&n$. %t# (&n) 'o) too-! * /!$ $/%n, t# '%!%! ,on(nt $+%'%t! & %n $$ &n$ 'nt&- &n &t! & &-(o!t o %n 't&%n 'o/nt%! &n$ t# o!'t o+ o &t! o& -on, %o$ &n$ $+-&t%on&) 'on'n! *%-- o&-) ,&%n t# / #&n$ &n$ !n$ on$

)%-$! -o*. ;n' t# %! & -o* !'o o+ +/t# &nno/n'(nt.

A! +& &! t# In$%&n 'ono() %! 'on'n$ %! !/++%n, +o( #/, $t to D>&t%o (oo In$%& %! t# -&,!t nt %(ot o+ 'o((o$%t%! -% O%- Goo$ (t&- %n -&t%onto t# D>. S#& $'-%n %n o%- %'! 'o/-$ '/t t# !/!%$) /$n &n$ t#o! !&%n,! *o/-$ /! +o t# +%!'&- !t%(/-/!. In'&!$ &n$ tt n$%t/ *%t# ,&t +o'/! on %(o$o/t'o(! %n !o'%&- &n$ #)!%'&- %n+&!t/'t/ &n$ !&+t) nt! *%-- !$ / t# 'o)'on!%!tnt *%t# t# -on,@t( ,o*t#.

PREVAILIN8 SITUATION IN INDIA'

#&t In$%& %! +&'%n, &t !nt %! & 'o(%n&t%on o+ %-- ++'t o+ ot# /!*%n, &n$ $o*n!*%n, &!

(o t#&n 30: o+ t# o/-&t%on !t%-- -%! -o* ot) -%n. "# %! & &&$o%'&- !%t/&t%on*#%n t# 'ono() -! /n$ ! In+-&t%on&) 'on$%t%on *%t# &no(&- %! %n %'!

'o(%n$ *%t# -o* o$/'t%on &n$ /n(-o)(nt -&$%n, to !t&,n&t%on o+ t# 'ono().

Ano(&- &n$ !%!tnt %! %n %'! & %n no *&) &n %n$%'&t%on o+ o!%t) &n$ t# 'o/nt)

%! (o%n, to*&$ +/-- (-o)(nt. On t# ot# #&n$ t# &'-o, o+ /n(-o)(nt %!

(o/nt%n, / )& &+t )&. "#%! &$(%t/ o+ !t&,n&t%on &n$ %n+-&t%on #&! n t($ &!

S"AGLA"ION. "#%! %! (o %$nt +o( t# n*! t#&t t#o/,# %n+-&t%on %! '-o! to o t#

%' o+ +oo$ &t%'-! !/'# &! /-!! '&-! 'o((on !&-t t& &n$ 'o++ t/n$ $& !%$!

,t&-!.

In$%& %n'$ & !t&, o+ !t&,+-&t%on %n 1973@74 &n$ 1974@75. %t# !o(%(o(nt &+t*&$! t# 'ono() -&!$ %nto !t&,+-&t%on &,&%n %n 1978@79 &n$ 1979@80.

"# &t o+ %n$/!t%&- ,o*t# #&$ $*%n$-$ $o*n to n& o.

F$--$4"n/ are t(e e& ,r$0-e% "dent"2"ed as 0e"n/ 2a#e 0& Ind"a at ,resent<



Go%,n '#&n, &n%n, %! &++'t$.

G&-- %n &-/ o+ / 'o(&! to ot# +o%,n '/n'%!.

I(ot! 'o( 'o!t-) &! t#) - /n$ '!!%on.

D'&! tn$ %n t# ot! $/ to $!!%on &! &-&$) & $'-%n o+ 20: %! ot$.

In$/!t%&- $n$nt on ot! !-) ,ot &++'t$ -% "%// "t%- %n$/!t%!

/&&t tt%-! -&t# (%n%n, +/- %n$/!t%! &n$ !o+t*& +%-$!.

Ot# +o*&$ &n$ &'*&$ -%n %n$/!t%! &-!o ,ot &++'t$.

S#%n&, o+ %n$/!t%&- ,o*t# &! (&n/+&'t/%n, (%n%n, 'on!/( non@$/&-! &!%'

,oo$! &n$ %nt($%&t o$/'t! !#o*$ n,&t% ,o*t#.

R,&$%n, !'%+%' %n$/!t%! ,o*t# 9 o/t o+ 17 !,(nt! %n' n,&t% ,o*t#

&t-) $/ to 'ont%n/$ !-/( %n o!&! $(&n$ -&$%n, to 'ont&'t%on %n ot!.

<n'onto--$ &n$ /n'#'$ &n!%on o+ &n%n, %n$/!t%!.

In'&! %n t# &$! &-&n' o+ &)(nt $/ to 't%- %n'&! %n t# %'! o+

+/-.



G/t/ +&-- %n t# +o%,n '#&n, o!%t%on $/ to !'&-&t%on ,o-$ &-/ &n$ $'-%n %n

t# &-/ o+ $o--&.

G&-- In &,%'/-t/ o$/'t%on &! %t %! %$nt +o( t# %(ot o+ !/,& /-! &n$ $%-o%-.

No !/!t&nt%&- (&!/ +o $/'%n, t# &%!%n, non -&n n$%t/.

MEASURES TO RECTIFY'

"# ,on(nt '&n &$ot t# +o--o*%n, (&!/! to '#' t# &%-%n, !%t/&t%on %n In$%&.

Mont&) (&!/! ) $/'%n, t# &n &t@t# &t &t *#%'# 'nt&- &n %! ,%%n,

-o&n to 'o(('%&- &n! &n$ $/'%n, t# ! /%(nt %n o$ to %n'&! t#

(on) !/-). Moo t#o/,# on (&t o&t%on -% /)%n, t&!/)

on$!B$/'t%on o+ (on) !/-) '&n 'o(n!&t$.

G%!'&- (&!/! ) n#&n'%n, t# %n$/!t%! #&%n, !)n,) ++'t -% #o/!%n, !'to

*#%'# -&$! to %(o t# o$/'t%on o+ '(nt %' %on &n$ !t- &n$ (-o)(nt

oot/n%t%!. "#%! %! t# &!on *#) on(nt %! ,%%n, t& (t%on to #o/!%n,

-o&n &! %t (ot%&t! (o o- to %n!t %n #o/! ot%!. "# t& +o,on ) t#

,on(nt %! 'o(n!&t$ ) '%! $/t) 'o--'t$ +o( ot# t#%%n, %n$/!t%!.

on(nt '&n o%$ $&*&' $/t) %.. +/n$ o+ t# %(ot $/t) *#n t# !&(

o$/'t! & ,o%n, to ot$ %n & &-/ &$$$ +o(. Go &(- ,o-$ %(ot$ '&n

ot$ &! *--).

>o%$%n, 'o(n!&to) +%n&n'%n, &n$ *%t%n, o++ & ot%on o+ -o&n -% ,%n to +&(

&n$ 'ont%n, &,%'/-t/ &! (o 'o(('%&-%$ on t#o/,# t&n!ot (&t%n, &n$

!to&,.



>o%$%n, -n%!#(nt -%'n! +o &-/ &$$ ot! %n o$ to %(ot &n) o$/'t

*%t#o/t $/t). A! %t '&n !o-$ to &n)o$) +& & &-/ %t $/'! t# 'o!t o+ o$/'t%on to

t#&t tnt t)%n, to %n'&! ot!.

>o(ot%on &-/ &$$$ ot &n$ !t%'t-) o#%%t%n, ot o+ &* (&t%&-! -% '-ot#

o -&t#.

In$/!t%&- ,o*t# !#o/-$ %(o$ ) -%&-%%n, 't&%n 'onto-! -%'n!! !o t#&t t#

&n!%on o+ %&t !'to '&n nt t# %n+-/n' o+ $+-&t%on.

"#o/,# o %n+&!t/'t/ t# !'#( %nto$/'t%on ) t# on(nt &! o ,o*t#

$%!t%'t!@ $%!t%'t! /-) $n$nt on &,%'/-t/! '&%t& %n'o( %! -o* n&t%on&-

-- no (&o %n$/!t%! no /-%' !'to /n$t&%n, &n$ -o* -- o+ : o+ -%t&')

&n$ non +&( (-o)(nt n$ to /!/$ %n & (o &,,!!% *&) t#o/,# t&

'/t! &n$ t& #o-%$&) to %n$/!t%&-%!t!.

In'&!! ot! ) 'on'nt&t%n, (o on &-tn&t% n* (&t! &! %t '&nnot $on

%n t# t&$%t%on&- (&t!.

In$/-,%n, (o on 'o/nt t&$ -% (ot%&t%n, t# ot%n, 'o/nt%! to %(ot +o(

/! +o t# !&( &-/. "#%! '&n $on ) $o%n, (o !&'# on t# o$/'t

/%(nt! o+ t# +o%,n 'o/nt%!.

I(o%n, %n+&!t/'t/ -% o* ,n&t%on -o,%!t%' !)!t(! &n$ !%--$ -&o %n

o$ to %(o t# 'ono().

A't% (&!/! to oo!t $(&n$ t#o/,# t& '/t! o %n'&! %n ,on(nt

n$%t/.



D-o(nt o+ (o ot o'!!%n, on %n *#%'# t# 50 : o+ t# &-/ &$$$

ot! (/!t o'/$ +o( t# -o'&- (&t@ %t# &* (&t%&- -&o/ o (%$$-

o$/'t! %n o$ to ot&%n 'o(-t t& &n$ $/t) (t%on +o t#% %(ot!.

M&%(/( ++ot! (/!t t&n %n o$ to $/' t# non@-&n n$%t/ !'%&--) )

t# /-%' !'to /n$t&%n,!.

C#&nn-%%n, t# nt% 'ono(%' (&!/! t&n ) t# ,on(nt to*&$! /&-

$-o(nt %n o$ to %(o t#% 'ono(%' 'on$%t%on.



BIBLIOGRAPHY

BOOKS

Managerial economics- S. Sankaran

Managerial economics- C.M. Choudary

Business environment- Francis Cherunilam

WEBliography

http://en.eikipedia.org/wiki/deation

http://articles.lattimes.com/keyword/deation

http://www.investopedia.com/terms/d/deation.asp

http://www. economy-watch-gautam.!logspot.com/

http://www.economywatch.com/

http://i!nlive.in.com/

http://vishalmishra.wordpress.com/

http://nvonews.com/

http://www.redi".com/money/is-deation-in-india-really-

possi!le.htm

http://articles.lattimes.com/keyword/deflation

http://www.investopedia.com/terms/d/deflation.asp


http://ibnlive.in.com/


http://nvonews.com/

http://articles.lattimes.com/keyword/deflation

http://www.investopedia.com/terms/d/deflation.asp


http://ibnlive.in.com/


http://nvonews.com/

37 Hanuman Bothra - Is Recovery in Indian Economy Real

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