2009 And Economy

So we are finally in 2009. Looking at 2008, it started of pretty well for India and the world economy. Our share market crossed the 20,000 magic figures for the first time with retail investors and FDI’s all optimistically pumping in money into market. Things all looked great until the U.S mortgage crises which created major credit crises forcing the U.S banks to pull out their money which they had invested as FDI’s in markets like India. This resulted in the crash towards the later part of 2008 by eroding the Indian market by more than 58 % and the index going below the 10000 mark. This resulted in a huge wealth erosion across India.

This has further rippled into other industries like real estate, manufacturing etc. Luckily our banks were more regulated which has resulted in hardly any bankruptcies compared to the U.S.

Hopefully the new RBI policies and the governments decisions to pump in more money, reduce housing Interest rates will bring back the India Shine.

For the IT industry this will be another challenging year with most of the American and European companies relooking and reducing their IT expenditure.

This should be the time for IT companies focus on upcoming markets like India and China which has lot of opportunities.

Hope fully the recession will be short lived and we might see some up side trend towards the later year of 2009