AbstractThe economic activity around its long-term growth trend is known as term business cycle or economic cycle. These fluctuations—often tracked through Gross Domestic Product (GDP)—reflect alternating periods of economic expansion and contraction. The traditional business cycle consists of four main stages: expansion, prosperity, contraction, and recession. Each phase is marked by changes in employment levels, industrial productivity, and interest rates. Some economists also argue that stock market trends tend to precede these business cycle stages.
Following the disintegration of the USSR, the United States has consistently sought to position itself as the world's singular superpower, thereby promoting the idea of a unipolar world. Apart from the infamous Great Depression of 1929-1933, the U.S. economy has experienced seventeen recessions, with the 2008 financial crisis standing out as a particularly significant global event. In the era of globalization, liberalization, and privatization, economies have become deeply interconnected. As a result, any major economic shift—especially in economically dominant nations—can have ripple effects across the globe.
In light of these facts, this article seeks to explore the following key questions:
What is an economic recession?
How has it affected Indian industries?
What measures can be taken to overcome or respond effectively to a recession?
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