The field of finance refers to the concepts of time, money and risk and how they are interrelated. Finance is used by individuals (personal finance), by governments (public finance), by businesses (corporate finance), as well as by a wide variety of organizations including schools and non-profit organizations. In general, the goals of each of the above activities are achieved through the use of appropriate financial instruments, with consideration to their institutional setting. Finance is one of the most important aspects of business management. Without proper financial planning a new enterprise is unlikely to be successful.
Today, India is undergoing recession. In economics, the term recession generally describes the reduction of a country’s gross domestic product (GDP) for at least 2 quarters. This financial crisis or recession has not strengthened its grip on India to a greater extent but yes it has had far reaching impact even though not destructive. India has been creped by such recession due to certain internal and external factors.
The Internal factors would be the fall in the stocks at share market. Yes, the share market had witnessed a record breaking fall ever. This fall had contributed to recession and inflation in the market, forcing the business organization to take protective measures. To certain extent the External factors would be due to the downfall that US economy witnessed due to the winding up of organization like Lehman Brothers. This effected Indian economy as due to the fact that India is to greater extent depended on actions and reactions that take place in US politics and economy as lot of organization operating in India have got there roots in US and UK.
A severe or prolonged recession is referred to as an economic depression which US faced after the First World War. To overcome this financial recession India needs to develop an economy that is very much independent, promoting domestic industry, by bringing in more of exports than imports. This can be achieved by having a control over the political drama, by introducing a policy as such based on which the corruption can be cropped and more amount of resource can be channelised, towards growth both vertically and horizontally. Apart from having an independent economy, India also needs to answer certain national issues like Population, Terrorism etc to evolve as a positive strength.
