Various industries at various stages passed through consolidation to become more competitive and economically viable and sturdy. Two major dimensions There two main causes of recession in the any sector in economy or economy as a whole: 1. Supply released by creating facilities or import is in excess of demand 2. Demand in the economy itself starts shrinking 3. Since it is linked to financial markets, bearish mood of the market discourage further investment.

Supply is supplemented by increasing domestic production or opening up sector or economy by allowing free and cheaper imports from other country. We are experiencing that due to integration with global economy supply in the domestic sector is in excess of demand.

Second, when investment in the economy starts trickling down, it leads to drop in growth of domestic industries and lead to a situation where the size of the cake itself starts shrinking. This generally leads to painful consolidation in the domestic sector.

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