This paper analyses the recession and its influence on Indian ship breaking industry.
The article Effect of recession, written by Nagpal N in 2008 has mentioned that the unemployment increased a lot because of recession. He has also mentioned that the companies forced to cut down their expenditure on advertising and media activities because of recession. Stock markets all over the world have shown negative results because of recession. Those who invested in housing, car, security and insurance schemes suffered lot of damages. Expatriates in America from countries like India lost their jobs and started to return because of the recession. As the dollar value falls, the American economy started to decline. The cheap goods manufacturers, China and Thailand like countries were also suffered lot of problems because of their market loss in America (Nagpal, 2008).
The article Impact of global recession on India by Sonia Verma explained recession in terms of demand, inflation and deflation. Indian companies getting good outsourcing businesses from America and any economic problems in America may affect India also. Exports to America from India also suffered major setback because of recession. America stopped new hiring which is another concern for the Indian expatriate community in America. Around one crore persons could loss employment because of recession in America itself in a financial year. IT industries, financial sectors, real estate owners, car industry, investment banking and other industries were the major sufferers of the current recession (Verma, 2009)
The article Recession proves to be a boon for ship breaking at Alang, reported heavy business in Indian ship breaking industry during the current recession period. It reported that companies docking vessels for disposal to avoid a downturn in freight rates. Rising steel prices,