The Global Financial Crisis and its Impact on Indian IT Industries

Finance Management

International Conference on "Innovative Management Practices"

The global financial crisis is an outcome of deep economic recession which generally refers to business cycle contraction and slowdown activity over a long period of time. It is a situation where macro indicator like gross domestic product, employment, capital utilization, household incomes and business profit fall and bankruptcies and unemployment rates are rise. The aggressive monetary and fiscal measures undertaken so far will not be able to secure a sound recover for the Indian economy with the global economy unlikely to receive its growth soon. A strong recovery of growth to 8-9 percent, however, is possible for India if it unveils a “second round of reforms “similar to what it had done in the early 1990s.Currently India has one of the largest IT (Information Technology) sectors in the world. This paper aims to examine the experience of Indian “IT “industry with the 2007/08 global economic crisis .The paper based on secondary data analysis. This paper seeks in three core areas. The first section provides empirical evidence of the impact of the crisis. The second section gives a theoretical explanation of the data collected and analyzed using statistical tools to understand the impacts of economic crisis. The third part gives a summary of findings in Indian IT industry during two phases pre meltdown period (2007-2008) meltdown period (2008-14).

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