Indian Economy is resistant to ongoing recession

Economic recession has effected almost all of the major economies of the world whether developed or developing, economies which don't have strong fundamentals are effected the most like the US economy(which happens to be the largest economy of the world presently). So what has made indian economy safer even in these tough times?

Also Read :
-Indian Elections Updates
-BRIC countries stabilising world economy
-Highest paid CEO's of world
-America's Top 20 CEO's ever list
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession


According to me it's the government's hold on the economy in place and the good thing about indian government is that it takes a very conservative approach because it keeps people's interest on high priority and consider the ill effects of one economic decision rather then talking about the corresponding positives this has acted as a firewall from the ongoing economic crises which is biggest after the 1929 great depression which i read in my history book in tenth grade.

It may be noted that still in india government has a very strong hold on the economic activities ( a lot of restrictions were removed in the 90's when Manmohan singh was Finance minister under PV Narsimha Rao government) had it been still like early 90's indian economy would have been completly shielded from the crises but an economy can rise only if it takes off some of restrictions and let the business congloramates go beyond the physical boundaries and compete globally as majority of indian companies are currently doing that's very good according to me.

If Indian government had lifted all of the retrictions in 90's no doubt our economy would have been much bigger today but would have been as affected as USA presently with pink slips all around and companies following hire and fire policies huh...thank god Manmohan Singh was there to think about it at that time...really SINGH is KING!!

The point described above by me is made clear by following figures that in the month of May itself we had $2 billion of FII money into our country, this is because of the stability and strength of the Indian economy, which is reassuring to the Indian investor.

Also Read :
-Indian Elections Updates
-BRIC countries stabilising world economy
-Highest paid CEO's of world
-America's Top 20 CEO's ever list
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession


ok now i am logging off will keep you guys updated in next post coming soon

- Himanshu Sharma

Economists up their economy forecast to 7 percent

Upbeat at formation of new UPA government headed by Prime Minister Manmohan Singh, economists on Friday said that continuity in policies would push economic growth to over seven per cent in the current fiscal.

Also Read :
-Indian Elections Updates
-BRIC countries stabilising world economy
-Highest paid CEO's of world
-America's Top 20 CEO's ever list
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession

"A very good government.it will provide support to growth. My projection for GDP growth rate is around 7 per cent and this government can realise it," said noted economist Saumitra Chaudhuri, who till recently was a member of the Prime Minister's Economic Advisory Council.

The new government, however, will have to address issues in infrastructure and education sectors, he added.

"I see a lot of continuity and stability as these Cabinet ministers have already worked for five years," said Nitin Desai, former Chief Economic Adviser.

Also Read :
-Indian Elections Updates
-BRIC countries stabilising world economy
-Highest paid CEO's of world
-America's Top 20 CEO's ever list
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession

"The growth is already on the path of recovery. The new cabinet should help in continuation of economic reforms", he said, adding the main challenge before the government would be to provide good governance.

Manmohan Singh was today sworn-in as Prime Minister for a second consecutive term at the head of a 20-member team in the first installment of government formation truncated by the deadlock over portfolios for DMK members.

Indian economy to recover from mid-2009 - Macquaire

(29-4-2009 Indian economy updates) - Indian economy will begin to recover from the middle of this year, thanks to the fiscal and monetary measures taken up by the government, but the outcome of the ongoing general election remains a legitimate concern, global research firm Macquarie has said.

Also Read :
-America's Top 20 CEO's ever list
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started

Macquarie said, "Our view remains that the largely domestically-driven Indian economy will begin to recover palpably from mid-year onwards."

The double-cylinder fiscal and monetary response has been aggressive and already paying dividend, the research firm said but added that "political uncertainty over the outcome for the ongoing general election remains a legitimate concern".

The other factors likely to contribute include that India is relatively less dependent on exports, its export profile is not heavily dependent on electronic or automotive shipments and the domestic fiscal and policy response has been aggressive and effective.

Also Read :
-America's Top 20 CEO's ever list
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started

Macquarie further said the Reserve Bank of India appears to be approaching the end of the policy rate-cutting cycle, but banks have more room to cut their lending rates more aggressively, which in turn should boost economic activity.

"Indeed, the broader setting is evolving nicely to position the economy for a better second-half of FY'10. Currently, we forecast a full-year GDP growth of 5.5 per cent for FY'10 following an estimated 6.5 per cent in the last fiscal year," Macquarie said.

posted under - economy of india, indian economy updates, economic crises, india economy, indian economy blog

Does US institutions really want to get out of crises

Well the world has been talking about the ongoing economic recession from september 2008 onwards probably this economic crises has been the longest running headlines i have ever seen, it's already into sixth month since it's inception. and still the markets are not responding in the positive manner and would not do so for atleast another 3-6 months according to me. US government and all the governments of the countries which have been swept by the tide of recession are pushing a lot of capital into the market so that the stagnant economy starts to move in the cycle again.

But still it seems like a distant island which the world economy is searching for right now. Government bailouts is certainly not doing the work neither are the job cuts or other cost cutting measures being taken. Already more then US$500 billion have been pushed into the economy by the US government. However indian economy would be less affected by this turmoil since 2/3rd of the industrial output of indian industries is consumed internally and only 1/3 rd of the output is exported to outer world , However the sectors which are directly depending on the other foreign companies like our very own outsourcing industry is feeling the heat with cost cutting measures and pink slips all around.

Also Read :
-US institutions reluctant to end crises
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started

All the governments are trying their level best by infusing more money into economy, still the danger of deflation is haunting business houses and industries as consumer confidence hits all time low in 50 years. Adding to the problem further is that whether US institutions which are getting grants from government in billions themselves want to put an end to ongoing crises ? the answer to this question after looking to latest company updates is a big NO, Citigroup ordered a corporate jet worth US $ 44 million whose delivery is ready(We do remember that Citi group is getting aid from US government and is already undergoing some major restructuring of the organization), Merill lynch has disbursed US$ 4 billion as bonuses to it's top brass(It was too in ailing condition and BOA had to do a takeover of Merill Lynch to help it and from last two quarters Merill Lynch has posted heavy lossess) so what are these bonuses for??

Also Read :
-US institutions reluctant to end crises
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started

US newly appointed president BaracK Obama came to know about these two incidents and has slapped both the institutions with overspending amid bad times and when your President slaps you there is no other option then taking back the moves which have been termed as overspending and not using govt funds for coming out of the bad times. So Citigroup has finally cancelled the order of $44 million corporate jet.

Adding further trouble is that European economies have slipped into condition which is even worse then the US. Governments have started showing bankruptcies, recently i read that government of Iceland has stated that the country iceland is into bankruptcy huhh!!

Also Read :
-US institutions reluctant to end crises
-How Infosys managed to increase YoY profit
-Effect of Recession on Indian Economy
-Economies hit by recession
-Plan for World Economy Revival
-World's Strongest economies list
-US Economic recession-how it started

And according to me european economies would take even more time then US to come out of the economic depression which has now become biggest since the great 1929 depression which we read in our history books.

posted under - economic crises, US companies, govt bailouts, US economy crises, economy of USA, world economy updates, indian economic advantage

Economies | Countries hit by recession 2008

1. Denmark - Denmark becomes the first European economy to confirm it is in recession since the global credit crunch began. Its GDP shrinks 0.6 percent in the first quarter after an 0.2 percent contraction in the fourth quarter of 2007.

2. ESTONIA - The Baltic state slides into recession with a 0.9 percent fall in second-quarter GDP after a drop of 0.5 percent in the first quarter.

3. LATVIA - Latvia joins its northern neighbor Estonia in recession as GDP falls 0.2 percent in the second quarter from the first quarter, when it fell 0.3 percent. Property markets and construction have suffered in both Baltic states.

4. IRELAND - The "Celtic Tiger" becomes the first country in the euro zone to slide into recession, with a 0.5 percent fall in second quarter GDP, following a 0.3 percent decline in the first quarter. Its last recession in 1983 saw thousands of people leave Ireland to seek work overseas.

5. NEW ZEALAND - New Zealand falls into a recession for the first time in more than a decade, with a 0.2 percent fall in seasonally adjusted GDP for the second quarter. First-quarter GDP dropped 0.3 percent.

6. SINGAPORE - First Asian country to slip into a recession since the credit crisis began. Singapore's export-dependent economy shrinks annualized rate of 6.8 percent in the third quarter after a 6.0 percent contraction in the second quarter, its first recession since 2002.

7. GERMANY - Europe's largest economy contracted by 0.5 percent in the third quarter after GDP fell 0.4 percent in the second quarter, putting it in recession for the first time in five years.

8. HONG KONG - Hong Kong becomes the second Asian economy to tip into recession, it's exports hit by weakening global demand. Third-quarter GDP drops a seasonally adjusted 0.5 percent after a 1.4 percent fall in the previous quarter.

9. ITALY - Italy plunges into recession, its first since the start of 2005, after GDP contracts a steeper-than-expected 0.5 percent in the third quarter. Second quarter GDP dropped 0.3 percent.

10. EURO COUNTRIES - The 15-country euro zone officially slips under, pushed down by recessions in Germany and Italy for its first recession since its creation in 1999.

11. JAPAN - World's second largest economy also went into recession due to dwindling sales in USA

12. SWEDEN - The Nordic nation announces it is in recession after GDP shrinks 0.1 percent in both the second and third quarters.

14. RUSSIA - Russia has also declared that it's economy is already into recession

13. USA - United States of America is already into recession from december 2007 , what looked like just mortagage crises broadened and engulfed all the above economies into it and still is in growing phase and will continue for another year 2009 for sure.

India Economy would be hit more in 2009 - thanks to Global crises

The global downturn will pressurise the Indian economy more next year and the government has to speed up reforms and boost investment to sustain high growth rates.

The report jointly prepared by World Economic Forum and Confederation of Indian Industry also said India could see a sharp outflow of capital, and a fall in share and asset prices due to the global financial crises. The report was released ahead of the annual India Economic Summit starting Nov. 16 in New Delhi, where top government officials are expected to interact with heads of global firms.

What others are reading now:
-Rs v/s US$ latest updates
-World's Strongest economies list
-Trouble in Indian Forex
-Indian Agricultural Updates
-Effect of Recession on Indian economy


"India's dependence on capital flows to finance its current account deficit is a macroeconomic risk and the global crisis could generate a sharp increase in capital outflows and a reduction in the availability of finance,Clearly, the global economic picture will be harsher next year and there will be greater pressures on Indian economy." it said

"It (global crisis) could also weaken the balance sheets of the financial institutions, cause a further fall in share and asset prices, and challenge the macroeconomic situation due to shrinking global growth," WEF said.

Indian policymakers expect a moderation in economic growth to less than 8 percent in the year to March 2009, compared with 9 percent recorded in 2007/08 fiscal year.

Earlier this month, Prime Minister Manmohan Singh cautioned that the global financial crisis could be more severe and prolonged, and the government would take all necessary steps monetary and fiscal to protect growth.

"A tighter environment may also help speed reforms and encourage greater efficiency," WEF said, adding a great deal of political will and dialogue with

What others are reading now:
-Rs v/s US$ latest updates
-World's Strongest economies list
-Trouble in Indian Forex
-Indian Agricultural Updates
-Effect of Recession on Indian economy

different stakeholders would be required to take reforms forward.

However India economy will be less affected when compared to global economies. The growth of Indian economy would be strong for coming decade that's for sure.