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Sectors most affected by the slowdown in the Indian economy

November 12, 2008

Everyone’s talking of the slowing down of the Indian economy. For us, so used to robust growth of around 8-9 percent, anything less is hurting. So how badly has the global financial meltdown really hit us? I am presenting an overview/summary:

  • The sectors least affected (directly) by the slowdown are Pharmaceuticals, Oil & Gas, FMCG, Media & Entertainment
  • Those which will feel a moderate impact of the global crises are Power, Automobiles, Retail, Hospitality and Tourism
  • The sectors most severely affected are Banks, Financial Services, Real Estate, Infrastructure and Information Technology

Lets take the severely hit industries first.

Banks have suffered losses, including some public sector banks like Punjab National Bank, Bank of India, State Bank of India and Bank of Baroda as they had an exposure to the instruments issued by Lehman and Merrill Lynch. It wasn’t just the private bank ICICI, although the latter posted the maximum losses due to their exposure.

However, if we take the overall the Banking sector in India, there is nothing to worry as heavy regulation coupled with the tendency of banks to be cautious (more than regulations stipulated) has protected the Indian banking industry. Even ICICI can easily handle the loss it has suffered. What it might impact is ICICI’s future plans to expand, but deposits are safe. For details check here.

Infrastructure companies:
Ongoing projects may not be affected but future ones might, by both private companies and the government. For example in Mumbai the future phases of the Metro might get hit. Many such future plans of all cities in India will get delayed and/or stalled. Stocks of infrastructure companies will take a hit.

Information Technology
Strangely it is those top IT companies with a lot of business abroad and in the US which are a safer bet because all their eggs are not in one basket. They also (usually) have more reserves. However the impact of loss of business will continue to be felt over the next one year as business of IT companies will reduce…financial institutions in particular will reduce their IT spends. Consolidation (abroad) of companies and Integration of their IT processes might mean more outsourcing (and more business for IT cos), but there is no guarantee that this outsourcing will go to Indian IT companies. The negatives for Indian IT is that two sectors, Manufacturing and Retail, will drastically cut their IT costs.

Indian employees on clients’ projects abroad would have to be relocated and/or issued pink slips.

Real Estate
The industry has taken a hit, with builders begging the government to reduce interest rates and give them other sops. But the sluggishness has been good for buyers. Housing prices have dropped 5 to 20 percent in all major cities. Retail rentals have also dropped.

When it comes to a slowdown in the housing market, one of the reasons put forward is that now speculators are wary of entering the market for short-term gains and this has reduced demand. Genuine buyers are more picky and hunt for bargains. Sellers have no choice but to give discounts…and this situation is expected to continue for at least a year.

As to how much further the real estate prices will decrease is a tricky question because even now there are some areas where the prices have hardly fallen at all. Clearly real estate at some prime locations is likely to remain more stable. With builders facing liquidity problems, their expansion plans have been hit and their present projects are being delayed. The minute the oversupply situation is corrected the real estate prices will stabilize. Maybe a year, maybe 18 months. No one really knows for sure.

Other sectors which have had a moderate effect of the economic meltdown

Demand will decrease, but replacement demand will not be affected.

This sector, like the real estate sector, was already facing problems due to increase in interest rates and the auto sector more so due to increase in fuel costs, but now the demand for automobiles has sunk further due to an overall slowdown in the economy. The auto companies bottomlines will suffer as their exports will take a hit, but even then as compared to other countries Indian Auto companies will suffer less as their sales from exports is less.

Overall, exports are down. And this affects all industries with any export component, particularly textiles, jewellery and so on.

Hospitality, travel and tourism
Not only are travel budgets of companies being slashed, tourist flow from foreign countries is set to reduce. This will continue for at least 6-9 months. Hotels, as they face greater competition, will see their profitability affected as they slash rates and give discounts.

There will be an indirect impact on all industries. For example, FMCG (Fast Moving Consumer Goods) companies will be affected indirectly as consumer spending will reduce. High spenders are believed to be those from the IT sector and this will effect spending, particularly of luxury items.

Note: Thanks to Axinia for passing on to me the Dawnay Day AV Report from which I summarized most of the points. I have added more from current news reports.

(Photographs are all copyrighted to me.)

Related Reading: India’s Retail sector problems
Financial Sector Tremors and the Impact on fresh graduates
Is India’s global competitiveness declining?
World Economic Forum’s global competitiveness rankings
India Budget 2008-2009

42 Comments leave one →
  1. November 12, 2008 8:25 pm

    Legal Services Market also….

    Hey, nice post…i just wanted to add another sector which has been hit by the economic slowdown.

    The legal services market in this context refers to law firms; those who deal with securities law, foreign investment laws-venture capital funding, FDI, FII, etc, Legal Process Outsourcing firms, those dealing with Mergers & Acquisitions.

    Since India is an emerging investment hub, because of the meltdown in the West, investment from the west into India will also slowdown. Those dealing with bankruptcy laws may gain in the short term, but may find it difficult in the long term.

    Law firms are now retrenching rather than recruiting.

    LPOs have been hit big time, since work coming to them has dried up.

    Jayant, thanks for this additional information. Yes it seems natural that the legal services market should some distress. – Nita.

  2. November 12, 2008 9:00 pm

    Shipping industry is also affected as banks are finding it difficult to issue Letters of Credit (LCs).The volume of cargo movement has also come down.

    Old Sailor, Thanks. The volume of cargo coming down is going to affect commercial shipping quite a bit. – Nita.

  3. November 12, 2008 9:03 pm

    The least affected industries are also those which did not run up a high frenzy in the run up to the peak. They have a conservative growth and havent been hit either. The infrastructure industry hopefully should be saved by some Government help. India’s infrastructure is way behind and we are building what we needed in the last decade instead of building for the future. Unfortunately, this sort of crisis hits projects midway causing losses and financial blockages. If there is any industry which needs a strong regulator it is the Housing Sector. If the prices are rolled back to “somewhat affordable” levels some of our youngsters dreaming for their own homes can make their dreams a reality though abandoned housing projects will shatter them. Hopes remain.

    Gopinath, a pity that public service projects are going to be affected. I am particularly sad about the future phases of the Mumbai Metro getting into delays! As it is we have enough delays in getting projects off the ground. – Nita.

  4. November 12, 2008 9:05 pm

    That was a comprehensive post..I just read a report on slowdown in exports..The dropping down of oil will have deep impacts on Middle east economy..Here,its a rocketing economny and I wonder what will happen if oil price drops by more than half..

    IT is gonna get down in India 😦 Thatz gonna affect me..

    Constructions are gonne slow down and thatz gonna affect my husband 😦

    I hope everything turns out fine soon..

    Nimmy, well, the impact here is more of a ripple and wave effect rather a tsunami. About the oil, here the govt. is not reducing fuel prices even though oil prices are going down as our oil cos are making losses. So if the price of oil falls it will help India a great deal as we import so much. – Nita.

  5. November 12, 2008 9:07 pm

    Hey! Tagged you for a personal take on feminism. Looking forward to a well-researched post on the issue. 🙂

    thanks Amrutha, I will do the tag certainly, but it will straight from my heart, without any research! 🙂 – Nita.

  6. November 12, 2008 9:20 pm

    I will say something more on IT industry

    My company had couple of projects for Lehman brothers as well as for Meryll Lynch, once the companies went out, everyone in the project was severly affected, 2 of them given pink slip.

    Appraisals this year were very very bad..people on probation were given confirmation but not rise in pay. Joining date for new joinees is postponed to indefinite period.

    15 people were kicked out for allegedly submitting false bills a year back.

    uff.. 😦 😦

    Sharad, thanks for giving info on your company but I hope your boss is not reading this! 🙂 Hope its allowed. 😀 I mean you are blogging under your real name I presume. – Nita.

  7. November 12, 2008 9:45 pm

    U have not mentioned manufacturing industries like steel plants, cars etc. Tata’s Nano is said to be affected. Steel sector industries like SAIL has reduced production and also expansion plans. It is said to be suffering loss due to reduction in export of steel.

    In IT sector the project based companies are firing employees. Whereas a product based company like PTC has posted a profit in the last quarter!

    Reema, true, manufacturing sector is down. I did mention the automobile sector though. However the manufacturing sector growth has gone down for some time now, from April onwards, and several reasons have been given for this. – Nita.
    P.s. Infact I realised that I had mentioned manufacturing too, although in passing when I was writing about IT.

  8. November 12, 2008 10:00 pm

    will i think everyone will recover if they get that black and white money in 😛

    anyway,this all started with the speculation that people are going to consume less in US and the liquid crunch there right? Now how about making sure that doesn’t happen in the future..

    as for the people losing jobs,well we should find jobs for them soon 🙂

    Vishesh, I share your optimism. – Nita.

  9. November 12, 2008 10:24 pm

    @ Nita

    I don’t care.. Yes I do blog under my real name.
    and What I have posted is correct 🙂 I believe I have not posted my companies name.. 🙂 🙂

  10. November 12, 2008 10:24 pm

    @ Nita

    The funniest thing (or not, depending on one’s perspective) is that the Dawnay Day empire failed and went into administration in the summers this year.

    I would say pretty ironic. 🙂 – Nita.

  11. November 12, 2008 10:50 pm

    A very nice post Nita. Came to know a how every industry performs in this recession.
    I think this are all happening as so-called wave(I forget the name) where it hits a low every 8 years. So this slowdown will be temporary and it will push us to achieve great things like an arrow dragged back in the bow.

    Kanagu, thanks. I agree, I think this is a small roadblock that we will get over soon, in India I mean. what worries me though is the infrastructure roadblock, we are too dependent on foreign investment in that. – Nita.

  12. November 13, 2008 12:09 am

    @ Nita : Grim is the word. Mostly I do business with Europe and even I have felt the business go down drastically since last year. I guess things will start improving gradually but I see some further shocks that are due to hit anytime now since some of the plans that these governments around the world have introduced to ease the pain are all set to hit roadblocks. Some of these roadblocks are political, some are just legal or procedural. Iceland is not likely to get the IMF aid so easily, Japan is squabbling over whether the rich should benefit from the stimulus, Obama’s team does not see eye to eye with Bush Administration over US auto industry and so on and so forth. Here in India I must say things have been so far less terrible than the west but if you read about the great depression the one thing that is very ‘interesting’ is that it started and ended in various parts of the world at different times. I think in this particular one countries that are very dependent on commodities will take the hit first and get out of the crisis before others as well. The next will be exporting countries and finally the service countries. Regarding India the one thing that is also worrying is the large fiscal deficit and the country as a whole depends on foreign investment to leverage growth. I think if after the crisis India is not somehow as attractive as before then we are in serious trouble.

    Odzer, thanks for the neat global overview. And when you say that “the country as a whole depends on foreign investment to leverage growth” that is what is very worrying. – Nita.

  13. November 13, 2008 3:41 am

    thanks for mentioning me and for making this report to an article! – honestly it was a bit too hard for me to understand, but with your brilliant post I can grasp the idea better.

    Thanks. 🙂 – Nita.

  14. November 13, 2008 7:34 am

    Nita, according to BBC NEWS recession is going to benefit Indian legal services.

    Thats a fascinating article Prerna! Thanks. – Nita.

  15. Vivek Khadpekar permalink
    November 13, 2008 8:06 am

    @ odzer:

    Thank you for a simple, objective and easy-to-follow exposition. It helps me begin to understand some things that I did did not before.

    Regarding India, may I add what I see as a major problem — self-delusion about our own importance, and an exaggerated perception of our being a significant global economic power. This has been very much in evidence over the last few years. If one had to identify a starting point, I would say it was when “India Shining” became a fashionable slogan.

    Vivek, I agree that we should at all times keep a balance. – Nita.

  16. November 13, 2008 8:27 am

    Bingo to Vivek on his point above!
    I read in today’s papers that Bollywood is facing the heat, too, with prices crashing and film productions coming down drastically. Surat is closed because the Americans don’t want diamonds now!
    Hospitals are going to be unwilling to repurchase equipment needed for upgrading, physicians are going to face patients with less ability to pay…..
    The list goes on endlessly.
    Good post, Nita!

    Thanks Rdoc. About Bollywood, there have been reports here too, but from what I have read it is more to do with the fact that Bollywood has some major flops this year. In fact only five films are said to have been hits, and in fact most of the big budget films have flopped. True, financing has also been affected, but the fact that people aren’t making money is the main thing. – Nita.

  17. Vivek Khadpekar permalink
    November 13, 2008 8:54 am

    @ Rambodoc:

    Hi! Seeing you here reminded me — one sector which should do well in India now is medical tourism. Hitherto confined to a clientele consisting of second-class (i.e. those who cannot afford the sanatoria in the US or in Switzerland) desert-dwellers in burnooses and Ray-Bans, it should now target the pinstriped-suit-and-rolled-umbrella crowd.

  18. Vivek Khadpekar permalink
    November 13, 2008 8:57 am

    @ Rdoc:

    I hope and pray your observation on Bollywood holds good for all time to come. In the long run it should go a long way towards making Mumbai a cleaner and more civilised place.

  19. November 13, 2008 9:32 am

    Nita..regarding the power sector..u said–“Demand will decrease, but replacement demand will not be affected.” What did you mean by “replacement demand”?

    I mean that those projects/industries/malls/complexes which are already existing will continue to need the power but new demand will be affected. – Nita.

  20. November 13, 2008 9:57 am

    Mujhe to yeah sab padhke bhi dar lagta hai!! Hope things settle down fast.

  21. November 13, 2008 11:57 am

    nice exhaustive post…but there is a flipside to it ,now the indian equity market is looking really attractive, and now they will be leading from the front

  22. sanjay permalink
    November 13, 2008 12:39 pm

    “We are the universe” the famous quote used by wall street giants
    well any1 here knwz wherz the universe right nw[:D].
    to some extent our banking sector is feelin heat but thk god they nvr thought tht they are the universe.our banking system is one of the best in the world and they r nt greedy as compared to us of a.(subprime)
    talking abt the automobile sector, worst newz comin up is GM motors are on verge of filing for bankruptsy.this will definately not help the indian auto industry

  23. Chirag permalink
    November 13, 2008 12:45 pm

    Nita actually Bank deserve this to a certain extent, I mean they were distributing the Credit Cards and loans like prasad. Hence they were able to show really high revenues. One of the only Indian Govt or I respect is RBI for some strange reason, they are working well. Hope they keep on checking these private banks.

    Information Technology are in my humble opinion overreacting and just taking advantage of the whole economic crisis, They have not yet faced losses as the Q3 and Q4 billing in most of the cases are done also $ value has also gone up. Current industry “strategy” is to fire all the 2-3 years exp people so they can hire freshers on lower salaries.

    Again Great Article on the real Indian picture.

  24. Sushan permalink
    November 13, 2008 2:48 pm

    Unrealistic salaries,unrealistic responsbilties and unrealistic expectations have led to this chaos.No one really calculated the real cost of good living .It was just inflated .You wanted to live as extravagant as you can. This is the problem of consumption economy. Let us stick to our culture of balance between earning ,saving and spending and we will be better off. Rightly said the noise is more than actual and we can come out of this if we decide to live within our means.

  25. hoku permalink
    November 13, 2008 2:54 pm

    Nita a thanks for the post. I think after reading your post a lot of people would realize the magnitude of the problem we are going to face.
    We, the middle class the most vocal supporter of the economic and financial globalization who have enjoyed the most during last decade must now be ready to face the ugly side of the globalization. This is not the first crisis of western capitalist world, every decade on an average there are two such crisis. This time it is severe and more global in nature and going to last for quite long. But for us this is the first crisis, simply because we have downed all our guards and now it is free for all. Remember even during the South Asian currency crisis, our next door, we were unscathed.
    As our industry has started operating globally ( when they get global, it is good for the owner and a handful of investors, no one else benefit, in fact the money used to acquire the foreign company could easily be invested here to generate more employment) they are exposed to vagaries of global economic ups and downs. I would give two examples one is TATA Motors and another is Hindalco.
    One of the reasons TATA motors is in trouble now is not mainly from reduced demand which I think a company of this size can absorb, but from its external operation. The main concern is increased debt burden on account of Jaguar Land Rover acquisition (2.3 billion dollars). The acquisition of Jaguar and Land Rover which are luxury brands that cater to a small percentage of customers and have a limited distribution network was branded by some experts as “It makes no sense at all,” ,“It’s passion that is behind this move.”,“value-destructive given the lack of synergies and the high-cost operations involved,”.
    Moreover, since the manufacturing operations of Jaguar and Land Rover are based in the UK and a large part of the sales are in the USA, drop in demand for cars in USA (32% drop to be precise) has great effect on TATA motors top line. Jaguar Land Rover, which incurred a loss of $383 million (around Rs 1,761 crore) between January and June this year, has affected financial performance of TM. Hindalco Industries acquired Canadian company Novelis Inc in an all-cash deal of $6 billion. Now financing the deal and fixed price contracts of Novelis along with declining Zinc and Aluminum prices are major problems for Hindalco.

    Nita like industry and industry lobbyists (media, CII) you have blamed interest rate as major problems for Auto and Reality sector. But IMHO this may not be the major cause (other than for commercial vehicle which is largely financed by loan). What I think the reduced consumer demand for Real estate and Auto is more due to high inflation than interest rate. Last 2 yrs cost of basic food items (
    how you feel when you hear the price of vegetable, dal, chawal etc) along with health care and education has gone up so much, people are consuming less on luxury items like car or home. If we compare current EMI for loans with what was may be 2 yrs back, I don’t see that a major problem for Indian consumer given their increase in income in last two years. But they are holding back may be due to lack of disposable income due to high inflation.
    I think Industry is using this crisis as an opportunity to put pressure on government to reduce the interest rate which they always love as that increase cost of operation and hence profit (forget that they would pass the benefit of low cost to consumer). Moreover, I think, we should not compare our interest rate with USA(1.5%), Japan (0.3%), UK (3%). Rather if we compare our key short term lending rate of 7.5% to those of emerging economy (BRIC countries) the interest rates are quite comparable. Brazil(13.5%), Russia (12%), China (6.6%). For India inflation is very important given the vast majority of poor people here, so government need to do a balancing act. Low interest, more liquidity may push inflation further.
    Nita I think your list of sectors are quite exhaustive. Any industry which depend more on export and foreign operation has to face the music. I think Textile which employs a lot of people would also be a major sufferer. IT would also be affected. Major sufferer would be those who depend largely on Banking, Financial Services and Insurance ( BFSI) and brokerage houses for their revenue (like TCS and Infosys). IT sector would suffer any way till it concentrate on product development (like windows, RDBMS etc) rather than concentrating on easy money from BPO (which in order to glorify is called ITES). Slow down in IT ITES would also affect Realty as demand for office space would get reduced. Retail sector (Specially mall based) is already suffering due to high cost and low margin. In my opinion they over estimated the potential of this sector in India.
    With uncertainties in market Share brokers and brokerage firms are going to be affected a lot.
    In fact its rather easier to envisage sectors who would probably be less affected. I think top of them would be Power and Infrastructure.
    In power sector there may be some slowdown in Capex but other wise effect may be minimal. Slow down in capex although may affect power EPC companies. Infrastructure projects are generally funded by government, so I think there would not be much problem. In fact I foresee very good time Infrastructure as a way out from the current mess could be huge dose of public investment in infrastructure. In fact China has already declared a 4 trillion yuan (£373bn) package. The Chinese government said it would “massively” crank up its spending on roads, railways, healthcare, education, power grids and low-cost housing. In USA I am sure the new administration under Obama would take up a similar stimulus package, which current administration is unable to take for ideological reason.
    Nita I am not sure what you mean by ‘Banks have suffered losses’. Do you mean share price? Because if you see most of the public sector banks they have a huge net profit jump this quarters.
    In fact at a time when corporate India has seen its net profits shrink, banks have sprung a surprise of sorts reporting a 26 per cent growth in their bottom lines in the second quarter of 2008-09. What makes the second-quarter show more striking is the performance of public-sector banks, which have done better than their private-sector counterparts on a cumulative basis . The country’s largest bank, State Bank of India, posted an increase of over 40% in net profit in the second quarter. Punjab National Bank has a PAT growth of 31% YoY to Rs 5.1 billion. .
    HDFC Bank posted an increase of 43.3% in net profit to Rs528 crore in the fiscal second quarter (Q2). Of course for the largest private sector bank, ICICI Bank the performance was dismal, it saw its Q2 net rise by only 1.1%.
    Other that ICIC banks public sector banks performance at Dalal street was also not very bad as compared to other sector. In fact we should remain thankful to coalition politics of India, which did not allow more liberalization of banking sector and we remain partially protected.
    Regarding hospitality sector India may become cheaper destination as money drops.
    Nita I am not sure how many people in India works at pure IT and BPO sector (may be less than 1%), so I am not sure whether FMCG would be affected due lack of spenders from IT sector (“High spenders are believed to be those from the IT sector and this will effect spending, particularly of luxury items.”) . Inflation would definitely have an effect on FMCG earnings.
    But how much each of these sectors and individual business would actually be affected can only be ascertained once their business result is out. In such scenarios Industries general create a lot of hue and cry to extract maximum benefit from government. In fact the actual picture may not be that bleak (industrial production has increased last month and Rupee has lost a lot of ground). Also I think share market do not exactly portrays performance of a business (‘Stocks of infrastructure companies will take a hit’ ) and we would be better off if we think Industry performance in terms of its balance sheet and numbers with out being bothered too much about how their share prices are behaving.
    (I am so tired after writing 2 pages, I don’t know how you mange to write so many good articles)

  26. November 13, 2008 3:06 pm


    My huge money sank in the stocks of ICICI 😦

    donno when will it recover

    sad to hear this Vivek. I think you have to wait for around 2 years, but I am no stock market expert. – Nita.

  27. hoku permalink
    November 13, 2008 3:19 pm

    vivek mitta@ either avg out (risky) or book loss and switch over to HDFC or axis bank or some PSU bank.

  28. hoku permalink
    November 13, 2008 3:22 pm

    sanjay@ every one is greedy. Our banks specially public sector bank could not do it for strict regulation.

  29. November 13, 2008 4:52 pm

    @ hoku

    dont terrorize me further 🙂 i’m waiting for it to come at least near my cost price, donno how long will it take

  30. November 13, 2008 4:59 pm

    Hoku, thank you for your beautiful comment! It took a long time time for you to write it but believe me, it is going to be useful for people. The information will always be available on the net and clear up a lot of things for people. You have expanded on what I have said, and clarified many things.
    Just wanted to explain what I meant by banks suffering losses. It wasn’t clear but actually what I meant was that they lost due to their exposure to exposure to the instruments issued by Lehman and Merrill Lynch. It doesn’t mean overall loss, for not the PSU banks as their exposure was very little.
    ICICI- reported exposure – of $80 mn
    SBI- reported exposure – $5 mn, expects to
    recover 70%
    PNB- reported exposure at $5 mn (expected loss at $ 2 mn)
    BOI- reported exposure – $ 11 mn

    About your other point about IT being high spenders but them being a tiny percentage of our population is right, but they go mostly for luxury items and it is the luxury items which are likely to take a hit in the FMCG sector.
    I am not sure whether you are right about inflation being more of a problem (at present) rather than high interest rates. I think inflation has hit the lower middle classes the most, as the percentage of their income going into food and provisions is high. As for the upper classes, if their EMI for a house or car loan or house loan goes up, the increase could be substantial, more than their monthly grocery bill. But I think both factors make a dent, but I agree that that the industry lobby is making a hue and cry about interest rates for their own selfish gains.

  31. hoku permalink
    November 13, 2008 5:42 pm

    Nita@ interest rate has hardened by about 3% so EMP per lakh would be additional 300 Rs. So for an 3 lakh rs loan (for cars) it would be additional 900/- . For 10 lakh it would be additional 3000/- . For 15 lakh it would be 4500/-. I think average Indian middle class (who can take 10-15 lakh) can pay that extra money. I would like to know whether the calculation is ok or not.

    Well, I know people who have bought flats and paying Rs 10,000/ a month back to the bank. Now this figure they arrive at (how much to pay back) after taking many things into consideration and usually they leave just enough for their other expenses. If their EMI goes up by Rs 2000/ its a hit. If food bills go up people stop buying expensive food items and manage to get by, but I am talking of upper classes here. – Nita.

  32. hoku permalink
    November 13, 2008 5:43 pm

    Vivek@ Sorry! Don’t want to scare you. But it would need some more time to stabilize.Today was very bad day as well. Germany is reported to be in recession too (Europe’s biggest economy). So my suggestion wold be to buy a few ICICI (tomorrow is going to be a very bad day, only +ve thing is inflationhas come down to single digit) at lower rate and trade them when market is up a bit and continue the process till you make good of the losses (remember of short term capital gain tax). You could take any good stock for trade, so in case of further down side you can hold them. But before taking a call talk to other people and do research. REMEMBER TRADING IS A RISKY BUSINESS.
    I am sorry Nita for discussing issues not related to the topic. (BTW you may get better hits if these terms are indexed by google):-D

  33. vebhav jain permalink
    November 13, 2008 6:03 pm

    Friends , we are been lucky to see this kind of situation in our life, but tis is the right time to invest for long time and plan according to that…and barack obama asked people to start saving and live with family…so it will help to reduce the expenditure…these are learning steps…

  34. November 13, 2008 8:59 pm

    Very nice compilation. The effect of credit crunch is felt all over the economy and your article gives a bell curve view of who is affected the most and the least. IT suffers a lot in this case, though I believe projects will start flowing into India due to cost cutting measures.
    When I saw the Real estate prices last year I was not just shocked but I felt it was ridiculous. I put my real estate shopping on hold and believed that it had to come down. Well I am glad atleast with your numbers that it was come down a bit. The prices were simply not affordable by average families.

  35. hoku permalink
    November 13, 2008 9:35 pm

    Nita@ for people who already have taken loan the current high interest rate should not have any effect as long as they are fixed rate loans. Problem is with new advances. I am very sure in last two years general income has increased proportionately. Forget about salaried people, income of business people has increased far more than increase in interest rate. Not only that lot of high ticket purchase in India are done from savings which should not have been affected by high interest rate.

  36. November 14, 2008 10:23 am

    Hoku, thanks for advice

  37. November 14, 2008 12:44 pm

    Its a domino effect and will impact every other industry as well, but for the telecom industry which I feel wont be impacted to that great an extent! I mean, people will still continue to make calls, wont they?

  38. November 15, 2008 5:47 am

    here they say recession is on the way out and Deep recession is in.

  39. Bharath permalink
    November 17, 2008 3:47 pm

    Good time for a midsize/small/startup companies.

  40. November 17, 2008 11:04 pm

    Nita, thanks for the nice and informative post.

    Thank you too, for appreciating. 🙂 – Nita.

  41. November 18, 2008 1:45 pm

    I loved your post and was wondering if the economy can turnaround sooner if the focus was given on being a consumer oriented economy.

  42. Geetanjali permalink
    December 6, 2008 12:58 pm

    it was truly fantastic. Just got my idea of this economic slowdown more clearer. I mean its really benefitting me to plan and co-ordinate my activities accordingly. i am doing business devlopment for a firm n believe me there was nevera tougher time in my job than this!! But, yes, now the bleak picture is much clearer and i have an overview of the entire situation n can work accordingly.

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