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    Introduction To Subprime Crisis

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    lord m4nitous
    The document discusses the impacts of the 2007-2008 subprime crisis on the Indian economy. It had major negative effects on several sectors including financial markets, banking, real estate, automobile, corporate, and exports. The crisis led to a drop in foreign investments, increased non-performing assets for banks, falling property and stock prices, and decreased exports and corporate profits. The Indian government and Reserve Bank took steps to provide economic relief and stabilize financial markets.

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    Introduction To Subprime Crisis

    Uploaded by

    lord m4nitous
    35 views2 pages
    The document discusses the impacts of the 2007-2008 subprime crisis on the Indian economy. It had major negative effects on several sectors including financial markets, banking, real estate, automobile, corporate, and exports. The crisis led to a drop in foreign investments, increased non-performing assets for banks, falling property and stock prices, and decreased exports and corporate profits. The Indian government and Reserve Bank took steps to provide economic relief and stabilize financial markets.

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    Introduction to Subprime Crisis

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    The document discusses the impacts of the 2007-2008 subprime crisis on the Indian economy. It had major negative effects on several sectors including financial markets, banking, real estate, automobile, corporate, and exports. The crisis led to a drop in foreign investments, increased non-performing assets for banks, falling property and stock prices, and decreased exports and corporate profits. The Indian government and Reserve Bank took steps to provide economic relief and stabilize financial markets.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    35 views2 pages

    Introduction To Subprime Crisis

    Uploaded by

    lord m4nitous
    The document discusses the impacts of the 2007-2008 subprime crisis on the Indian economy. It had major negative effects on several sectors including financial markets, banking, real estate, automobile, corporate, and exports. The crisis led to a drop in foreign investments, increased non-performing assets for banks, falling property and stock prices, and decreased exports and corporate profits. The Indian government and Reserve Bank took steps to provide economic relief and stabilize financial markets.

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    Introduction to Subprime Crisis

    Subprime crisis is a financial crisis that occurred in the US in 2007-2008, triggered by a sharp
    fall in house prices and an increase in defaults on subprime mortgages. Subprime mortgages
    are loans given to borrowers with a weakened credit history or a low credit score, who are
    considered to be at higher risk of default. The crisis caused a domino effect in the global
    financial markets, and several countries, including India, were affected by it.

    Impact of Subprime Crisis on Indian Economy


    The subprime crisis had a major impact on various sectors of the Indian economy. The
    investments made in the US markets had a negative impact on the Indian financial markets.
    This led to a drop in FDI and FII inflows, resulting in a low investment in the Indian economy.
    The crisis also caused a loss of employment as many companies had to downsize or shut
    down. Furthermore, the stock market was affected as the Sensex went down by more than
    30%.

    Subprime Crisis and its Impact on Banks


    The subprime crisis had a major impact on the banking sector in India. The banks were
    affected by the increase in non-performing assets, which led to a stress on their capital
    adequacy ratio. This made it difficult for the banks to provide loans to businesses and
    individuals, resulting in a slowdown in the economy.

    Impact on Real Estate


    The subprime crisis had a major impact on the real estate sector in India. The demand for
    real estate decreased significantly, resulting in difficulty in selling properties. This led to a
    decrease in prices of properties, causing a loss to real estate developers.

    Impact on Automobile
    The subprime crisis had a major impact on the automobile sector in India. The sales of cars
    and other vehicles decreased significantly, resulting in a decrease in profits for automobile
    companies. This caused a major setback to the automobile industry in India.

    Impact on Indian Corporate Sector


    The subprime crisis had a major impact on the corporate sector in India. Companies saw a
    decrease in their profits and revenues due to the crisis. This led to a decrease in the market
    capitalization of companies, leading to a fall in their stock prices.

    Impact of Subprime Crisis on Financial Markets


    The subprime crisis had a major impact on the global financial markets. There was a lot of
    uncertainty in the markets due to the crisis, resulting in an increase in volatility. This caused
    a lot of investors to pull out of the markets, leading to a decrease in investments.

    Impact on Indian Exports


    The subprime crisis had a major impact on Indian exports. The exports declined significantly
    due to the crisis, resulting in a decrease in export revenues. This caused an increase in the
    trade deficit of India, as imports were more than exports.
    Impact on Government Policies
    The Indian government and the Reserve Bank of India (RBI) took several measures to
    mitigate the effects of the subprime crisis. These measures included fiscal stimulus, bank
    recapitalization, and RBI measures. These measures were aimed at providing relief to the
    economy and stabilizing the financial markets.

    Conclusion
    The subprime crisis had a major impact on the Indian economy. The crisis caused a ripple
    effect in the economy, resulting in a decrease in investments, a loss of employment, and a
    decrease in the stock market. The government and the RBI have taken several measures to
    mitigate the effects of the crisis. It is expected that the Indian economy will recover in the
    near future.

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