3. Background
Of
Subprime crisis •Greed of Investment
bankers
•Failure of Regulating
authorities
•Fallacious rating by rating
agencies
4.
5.
6. •Boom in the housing market
•Speculation
•High risk mortgage loans
•Securitization practices
•Inaccurate credit rating
7.
8. Information technology
• US banks had huge running relation with Indian
software sector
• About 30000 jobs were impacted
• Revenues from the IT field declined
9. Exchange rate
• Exchange rate volatility in India increased
• Rupee depreciated sharply
• Rupee fell by nearly 25%
10. Foreign exchange outflow
• Indian economy greatly integrated with the
global market
• Outflow of cash reserve
25. India's exports
• Positive relation between India's exports and
world GDP.
• Elasticity of India's exports with world GDP is
0.29
• Slow down in world economy
26. Inflation
• Inflationary rate rose sharply
• Central bank revised bank rates 5 times
• Domestic inflation stood at 9.7% in Oct 2010