Financial Crisis hit in US - Is India taking it seriously or will India face the same

I think we are one of the least affected of all. (I can explain)

Indian stock markets were greatly insulated earlier. All the barriers setup by the government were keeping the FII from entering. Then cam the bull run and our markets got flooded with FII's funds.

Stock Markets which were the "topic of discussion" mostly of the financial experts now become like daily soaps (like any of Ekta K's)

Then came the sinking of a Juggernaut. "US-SUBPRIME CRISIS"

The same kinda thing happened when our Finance Minister issued this year's budget. He sanctioned somewhat around 60,000 crores(if i remeber correctly) for waivering of the farmer loans.

This created a negative sentiment in the minds of Foreign Investors as they dont want any country to use a considerable part of their GDP in waivering loans instead of putting it in development of the economy.

India's global rating in context of investment return got reduced and it is now in the verge of getting removed from BRIC league. (Brazil, Russia, India and China)

Moreover, the crisis at US has left not much choice for the American Investors to withdraw from international markets and bring cash back to their nation.

As far as placement session is concerned, I believe that the worthy ones are never ever jobless.
 
YES INDIA HAVE TO BECAUSE IFAMERICAN ECONOMY GOES DOWN INDIAN ECONOMY WILL BE EFFECTED NEGATIVELY TOO AS INDIAN ECONOMY IS NOT COMPLETLY SEPERATED FROM US THERE R DIRECT AND INDIRECT LINKS TO US
 
i think we should take it seriously instead of immetating USA and we should not repeat the same thing .............. as far as india is concrned we are the least hit economy due to this crisis
 
A report has said that on an average every American holds 3 credit cars. A total of 984 million credit cards.

Credit ratings are given and even those below the rating of 620 that the threshold, still banks gave loans for buying new houses, but the truth was that the land prices were falling since 2000 and people savings too dropped from 20% in 2000 to Negative in 2005. No report on savings in US after that.

And it’s been proven that on an average an American earns $43000/- a yr, + credit cards' bills are avg 16500$ & the total expense is around 67000$. So every yr an American is 24000$ under debt.

So this credit balloon had to burst one day and it happened.

While India Is safe coz of it norms on capital to current accountability conversion.
FDI is allowed easily but not allowed easily to liquidate funds. But that was not the case in the stock markets, and this due to the crisis FIIs started to liquidate their funds from Indian stock markets and that’s the reason the stock market went Phoos.

And now the US, UK & Germany govt. go for bailout of 700 billion, 50 Billion and 100 billion resp. while their debt is much higher. US debt runs in trillions.

So lets keep our fingers crossed and see the wind change direction to the good for all.

<<<<<<<<<All the best and God Bless ALL>>>>
 
ya u r absolutely right....placement season is getting affected...many co's hv minimized their package bcoz of global crisis and few co's are cmg to b-schools..so its a tough situation for students.....
 
Can some one give some good articles on this topic? news links, dedates. We need to make assignment on this topic. Thanks
 
Yes, India has taken things seriously as we know that India is insulated from the global economic crises to at least some extent thanks to the policy makers of India.
 
the problem with the economy is humongous,stocks are falling precariously and as they rightly say the word is globalization ,whether agreed or not INDIA will be affected.
 
i dont think INDIA is going to get affected from the ongoing US financial crisis. Thats because :

1. India isn't a capitalistic economy like US where the sole aim of govt and pvt companies is PROFIT MAXIMIZATION which according to me is the sole reason for this crisis.
2. The exposure of the Indian companies is very less in these US investment banks. Like SBI has only exposure of USD 50 million in Lehman Bros. from its USD 250 billion portfolio worldwide.
 
india is suffering from financial crisis too. sansex falls below 9000 mark inflation is at record high. value of ruppee going down by breaking all the previous records.
 
hi all,
i am new in forum in my thinking if banks are stable so economy also stable..
check this news.

"New Delhi, Oct 20: Prime Minister Manmohan Singh on Monday assured depositors about the health of the Indian banking system, saying there should be no fear of failure of any bank".

more here: zeenews. com/articles.asp?aid=477545&sid=BUS (ony remove space)

thanks
 
Hi Friends,
Its not only India that is takin matters seriously,,, but the entire universe is....n the reason is the over dependent on US Economy....i'm sure this will be a great learning lession for these countries including India & & the later shhd now impose some regulations on movements of FIIs.....f*** off the dollars now & let other currencies emerge.....Now since the scenario exisits....wht to do?............my simple one word answer for the countries/businessess would be "sustainence"....yes dont try to be fearful or overpower the impact...cld land upside/down....just try to sustain the current conditions for few months...i'm sure the rise wld be gr8 in gud times ahead...

Cheers.......:SugarwareZ-142:
 
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