[rudraksh123]

Originally Posted by study_hard

Good work Pooja & Rohit..
I'd like to add these points:

A recession occurs when there is a fall in economic growth for 2 consecutive quarters. The 1st recession occured in 1946 when colonialism ended due to 2nd World War.

CAUSES OF THE PRESENT RECESSION:
- Credit crunch (shortage of finance)
- Sub prime mortgage crisis
- Cost push inflation squeezing incomes & reducing disposable income

WHAT WENT WRONG WITH INDIA
- Unnecessary media hype about rise of Infosys & Wipro, TATA Tetley acquisition, Arcelor Mittal takeover, Indira Nooyi taking over Pepsi Co as CEO, Arun Sarin took over Vodafone.

- The triumverate of Manmohan Singh, P. Chidambaram & Montek Singh boasting about double digit growth which was never realized. Inflation however touched double digits.

- Big consulting majors expecting the multi-billion dollar market suddenly growing 3 or 4 times by 2012-15.

Hence India wasn't a bubbling economy but an economic bubble.

Few reasons why India got affected by US recession..

coz we (Indians) have confined ourselves to US for all types of business/trade.

Majority of BPO/IT business of India is from US.besides, the majority of FIIs investing in Indian stock markets are from US.

Any slowdown in US economy will effect them and hence will effect we Indians and our Indian companies.

Even if the slowdown of US economy may not effect us directly, it does have psycological impact on us.

Since we r so much dependent on US.. it was obvious..!

[kewlankit]

y u people thing india is much affected
v shud say india is in midst of emotional recession
india 4 long is having growth rate of arnd 6
xcept last few yrs havin 8.5
nw india again is havin grwth rate of 6
recession is vn grwth rate is -ve
so dis ol is EMOTIONAL recession 4 india
nd india cn find a huge mrkt 4 abt evrthin in india itself thanx 2 our huge population dat is playin a gud role
evrythin cn b cnsumd by our population
nd v shud think +ve it is a recession dat cums in a century
last tym it made america a super power
may b nw its our turn to bcum 1 " SUPER POWER"


i dn think i have deviated d topic much.......
ehhh

[poojadatta]

Reccession
What make me wonder is though this not the first time US has encounter with recession after world war -II this is near to 10th time US went under recession which is the root cause of recession all over the world.
Second most of the bank in US are not nationalized making it really dangerous. In India banks are nationalized and I think it was because of out Finance minister and Prime minister we had quite stable compare to other country.
But what I feel now that from India point of view now it should not be that independent on US. Second US should now think why they are always beginner of this recession.
Guys your points on this

[study_hard]

Originally Posted by kewlankit

y u people thing india is much affected
v shud say india is in midst of emotional recession
india 4 long is having growth rate of arnd 6
xcept last few yrs havin 8.5
nw india again is havin grwth rate of 6
recession is vn grwth rate is -ve
so dis ol is EMOTIONAL recession 4 india
nd india cn find a huge mrkt 4 abt evrthin in india itself thanx 2 our huge population dat is playin a gud role
evrythin cn b cnsumd by our population
nd v shud think +ve it is a recession dat cums in a century
last tym it made america a super power
may b nw its our turn to bcum 1 " SUPER POWER"


i dn think i have deviated d topic much.......
ehhh

I differ on this point. Although India is capable of handling recession much better than its counterparts still India as a country can't remain insulated from the effects of global slowdown. It's an open market, the effects of recession are bound to leave their impact everywhere. The following are some of the impacts of recession on India:
1. Outsourcing deals will be affected.
2. Indian companies dealing with US biggies have already got their profits declining.
3. Fall of sensex due to loss of faith of people in the market.
4. Dip in employment.
5. Projects stuck halfway.
6. Falling rupee will led to scarcity of buyers.

Hence although India is in a better position than others but still much more needs to be done if it has to combat recession effectively.

[kewlankit]

recession is a cycle
" evrythin dat grws or rises has 2 fall bak"
simple recession cumes in abt 4 yrs
take last came 96 den 2001( IT slwdwn rember)
dis type is severe cumin rnd in 100yrs
nw if u noe FREDDIE nd 1 more financial institution backed severly by U.S
gave away 1000's of crores of loan at vry less interest
people tuk loan even for payin bills
due to dis private banks (lehman bros nd AIG)jumped into dis nd dey also gave away loans
seein govt's +ve attitude
bt loaners strtd 2 becum defaulters nd subsequently real estate( i.e der gurantee)
failed
banks were nt able 2 recover loans
ya v may say indian banks r nt so much given freedom to give away loans
still rate of interest is 10 bt in U.S nd japan rate is near to 0 nly
nd U.S is alwyz d beginner cz evrybdy follows d king( i.e U.S) a slight fall in u.s
makes mrkts dwn so it appears 2 us dat u.s is alwyz d beginner cz other countries r nt much highlghtd

[study_hard]

Yeah Ankit.. You just explained the US Subprime mortgage crisis. Low interest rates and increasing demand of homes were expected, however the opposite happened and cast doom.

[kewlankit]

Originally Posted by study_hard

I differ on this point. Although India is capable of handling recession much better than its counterparts still India as a country can't remain insulated from the effects of global slowdown. It's an open market, the effects of recession are bound to leave their impact everywhere. The following are some of the impacts of recession on India:
1. Outsourcing deals will be affected.
2. Indian companies dealing with US biggies have already got their profits declining.
3. Fall of sensex due to loss of faith of people in the market.
4. Dip in employment.
5. Projects stuck halfway.
6. Falling rupee will led to scarcity of buyers.

Hence although India is in a better position than others but still much more needs to be done if it has to combat recession effectively.

i wud lyk to clr sum of ur pts
1.) outsourcin deals r +vely impacted due to recession as cmpanies in u.s to increase der margins r shiftin or outsrcin wrk to india
2.) due to u.s nd prft declining cmpnies r shiftin der focus n other countries dn u think it is a +ve side over dependance on u.s hz cum 2 n end
3.) fall in sensex is nt fall in faith bt market is CORRECTING it wz 2 much hyped nd share were ovepricd dat tym
4.) dip in emplymnt is b'cz many tyms dey emplyed people dat were unemplyable ( acc to survey 70% graduates r unemplyable) bt emplyd nly 2 increasehuman resrce nd de by gain prjts
waise thoda bahut toh impact hoga hi due to u.s yar
5.)prjt k baarey ki strck half dn noe much
6.) fallin rupee is gud 4 xporters
remember jab $ 40 ho gaya tha xporters were badly hit
by fall in rupee v cn xprt more due to givin better competition to our peers


waise dese iz nly wat i think
its gud ki recession came tak it in a +ve way
d things v were dng wrong its tym 2 crrct den na lyk over dependance on u.s
cz nly on strng foundation a super power v cn bcum

[simplyshekhar85]

Originally Posted by kewlankit

i wud lyk to clr sum of ur pts
1.) outsourcin deals r +vely impacted due to recession as cmpanies in u.s to increase der margins r shiftin or outsrcin wrk to india
2.) due to u.s nd prft declining cmpnies r shiftin der focus n other countries dn u think it is a +ve side over dependance on u.s hz cum 2 n end
3.) fall in sensex is nt fall in faith bt market is CORRECTING it wz 2 much hyped nd share were ovepricd dat tym
4.) dip in emplymnt is b'cz many tyms dey emplyed people dat were unemplyable ( acc to survey 70% graduates r unemplyable) bt emplyd nly 2 increasehuman resrce nd de by gain prjts
waise thoda bahut toh impact hoga hi due to u.s yar
5.)prjt k baarey ki strck half dn noe much
6.) fallin rupee is gud 4 xporters
remember jab $ 40 ho gaya tha xporters were badly hit
by fall in rupee v cn xprt more due to givin better competition to our peers


waise dese iz nly wat i think
its gud ki recession came tak it in a +ve way
d things v were dng wrong its tym 2 crrct den na lyk over dependance on u.s
cz nly on strng foundation a super power v cn bcum

it took double the time required to read this up,
please yaar thoda lingo kam use karo, just a request

[rohit.r6]

Originally Posted by kewlankit

i wud lyk to clr sum of ur pts
1.) outsourcin deals r +vely impacted due to recession as cmpanies in u.s to increase der margins r shiftin or outsrcin wrk to india
2.) due to u.s nd prft declining cmpnies r shiftin der focus n other countries dn u think it is a +ve side over dependance on u.s hz cum 2 n end
3.) fall in sensex is nt fall in faith bt market is CORRECTING it wz 2 much hyped nd share were ovepricd dat tym
4.) dip in emplymnt is b'cz many tyms dey emplyed people dat were unemplyable ( acc to survey 70% graduates r unemplyable) bt emplyd nly 2 increasehuman resrce nd de by gain prjts
waise thoda bahut toh impact hoga hi due to u.s yar
5.)prjt k baarey ki strck half dn noe much
6.) fallin rupee is gud 4 xporters
remember jab $ 40 ho gaya tha xporters were badly hit
by fall in rupee v cn xprt more due to givin better competition to our peers


waise dese iz nly wat i think
its gud ki recession came tak it in a +ve way
d things v were dng wrong its tym 2 crrct den na lyk over dependance on u.s
cz nly on strng foundation a super power v cn bcum

one point which i highlighted earlier was speculation
its one of the main causes or artificial inflation of prices
speculation had touched amazing proportions in the 2007-08 period
ready cash and capital provided by finance companies led to all types of investors in the market.....
also indian govt had banned trading in essential commodities ike wheat(ban lifted in dec 0 so that these prices dont skyrocket
oil touched an all time high of 150$ per barrel

and now we see its price 1/3rd compared to its 150$ high.

any reason why this happened

THERES NO ONE TO SPECULATE

had opec not contained the oil production output, oil wcould have gone down to as low as 30$ per barrel.

so my friends, everything is related to demand and supply......and in this case whatever demand existed was virtual and no one was actually buying barrels of oil !!!

[rudraksh123]

Originally Posted by kewlankit

i wud lyk to clr sum of ur pts
1.) outsourcin deals r +vely impacted due to recession as cmpanies in u.s to increase der margins r shiftin or outsrcin wrk to india
2.) due to u.s nd prft declining cmpnies r shiftin der focus n other countries dn u think it is a +ve side over dependance on u.s hz cum 2 n end
3.) fall in sensex is nt fall in faith bt market is CORRECTING it wz 2 much hyped nd share were ovepricd dat tym
4.) dip in emplymnt is b'cz many tyms dey emplyed people dat were unemplyable ( acc to survey 70% graduates r unemplyable) bt emplyd nly 2 increasehuman resrce nd de by gain prjts
waise thoda bahut toh impact hoga hi due to u.s yar
5.)prjt k baarey ki strck half dn noe much
6.) fallin rupee is gud 4 xporters
remember jab $ 40 ho gaya tha xporters were badly hit
by fall in rupee v cn xprt more due to givin better competition to our peers


waise dese iz nly wat i think
its gud ki recession came tak it in a +ve way
d things v were dng wrong its tym 2 crrct den na lyk over dependance on u.s
cz nly on strng foundation a super power v cn bcum

Some very good points bro.!!
especially abt the outsouring deal.. true we depend on US for projects but then they dont have the man power nor the talent to handle those projects so they eventually have to turn to India.
And yeah... it definately has not had a negative impact coz if there was one, most of the BPO companies would have gone down .. rather they are still recruiting.

About IT companies removing people or cutting down on costs, I see it as more of a reason for them to do something they wanted to do.
Everyone knows the IT serivices companies in INDIA, especially software testing and development do recruit in bulk even if the actually manpower required is very less. Eventually people are kept on bench and then finally kicked out when a company goes in for "Cost Cutting!"

You also had a good point regarding the market.. very true that the shares were overpriced.. take example of land rates, the land rates were going on increasing.. every quarter there was a substantial increase in land rates all over.. It had stop somewhere!! and Recession has indeed bought the land rates down.

India is still affected by the recession but may be less.. compared to some other countries. Have to say right now we are in a much better situation then what US is..!