The written statement of recuperating Prime Minister Mr. Singh, presented in the parliament, reads, “India would emerge as one of the least affected among the countries of the world from this current economic crisis” Mr. Prime Minister could only afford to be optimistic, otherwise Indian corporate world and common Indian are finding it difficult to deal with this meltdown.
It would have been great if a common citizen of the nation could afford to be as optimistic as Mr. Sing is. Questions need to be asked about the reason of this optimism on the side of the Government, though every Indian pocket is losing its weight. India’s one of the most revered economists Mr. Singh can only provide valid reasons for his sanguinity, because every single Indian is clueless on how to manage financial problems.
Every economy, be it developed or developing, is simply becoming stagnant and showing no sign of recovery. Seems every one is under the aura of the US, raising no fingers towards it, who is the sole conspirator of this recession. Policies of the US Government were the single largest reason; people and businesses all over the world are trying to cope up from this problem. Smart and intelligent finance experts of the US found a unique way to earn money by providing the security to sub prime loans from the tax payer’s money.
As far as Indian prospects are concerned, our banks are safe because of string regulations of the RBI. Corporate India is in deep waters and feeling jittery, only looking for the way of surviving this man made calamity. Business institutions are finding it very difficult to cope up with the crunch of liquidity and low consumer confidence. Off-shoring firms, especially Info-Tech and BPO sector are severely blemished. Manufacturing industry is also finding it hard to run the businesses with such a high cost and low return ratio.
India may survive these crises by whisker as did in year 1999-2000, but its impact on “aam aadmi” could not be avoided as it has already started taking toll in almost every single house hold in India. Many experts have started making prediction about the revival of the global economy soon.
We hope it will, but consequences will leave their impressions for years to come.