Global Economic Slowdown | Economic Growth in India | Economic Growth in 2011

22 Dec

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Economic Growth in 2011, Economic Growth of India in 2011, Economic Growth, India Economic Growth, Economic Growth Rate, Economic Growth Rate India, Economic Growth, Mixed Economy, Economic Growth Definition

Global Economic Slowdown

When United States hit the headlines for global economic slowdown it definitely send shockwave to many of those business magnates sitting across the globe.

It is true that the moment the news of economic slowdown breaks, the stock markets may plunge and bears will take control of the bulls, while discussions will be telecasted live that whether India will be affected by the economic slowdown.

Global economic slowdown can have a negative impact on the IT and IT enabled companies in India as the major outsourcing country is America.  However, one can’t firmly say that the entire economic system in India will go for a toss if the US economic system catches cold. European slowdown and presently the exchange rate of Indian rupee, which has gone down also has added woes to the investors and common people.

An Indian based company having no branches or roots in USA or any other country will be steady despite the global economic slowdown. However, the stock markets, as mentioned earlier, will stumble.  Remarkably, this won’t be a matter of a grieve fear for the shareholders, who will retain their shares.

The companies that have branches or roots in USA will certainly be affected due to the global economic slowdown as the US adopts cost cut measure to recover from the economic shock. The cost-cutting measures include the cut down of its branches too. In that way, if a branch is not working well or if a company doesn’t prove as a good outsourcer, they may closedown that branch or cut its business links.

Therefore, the bad performers are always at risk during the phase of economic slowdown. Many economists and experts are of the opinion that there are many Indian based companies that were aggressively recruiting when the global economic slowdown was shivering many IT and IT based companies across the globe during 2009.  According to them, a good company will not be dependent on mere share markets and such a company will not be at risk even if recession shows its ugly phase.

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Posted by on December 22, 2011 in Uncategorized


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