Present day glut in world's economy is reminiscent of recession which took the center stage in 1930s. World today is struggling to come to terms with this recession monster. The job losses have been unprecedented. All developed and developing economies are reeling under the onslaught of this monster. Panic has spread to India and China as well. The fallout of this recession has even hit the emerging economies of India and China very hard. India's services in form of IT and IT-ES have been hit as US and Europe accounts for nearly 60% of the IT sector revenues. China's manufacturing has stuck the panic button as the inventories are piling up and their exports have been hit.
China has announced a rescue package of around $586 Billion Dollars close on the heels on America's $700 Billion Dollars package. India's has also tried to infuse lots of liquidity in to its financial system, through lowering of Rep rates and boosting government spending but the enormity of situation demands some radical approaches. The great fall will stabilize and journey back to the upward slope of the curve may take about 18-24 months. There is lots of potential in economies of China and India. They will continue to grow at 8-10% range. World economies have to knit themselves in to one single mesh and synergize their operations. The great US economy cannot just stand and watch India and China to take the center stage. US would like to be very much involved in to the action.
More importantly since world economy is integrated today, it will be better if everybody joins hand and work towards getting economy back on rails.
Virtual Web Symphony - A blog by a management and software consultant, SEO and SEM expert, E-learning evangelist and all weather Guru.
China has announced a rescue package of around $586 Billion Dollars close on the heels on America's $700 Billion Dollars package. India's has also tried to infuse lots of liquidity in to its financial system, through lowering of Rep rates and boosting government spending but the enormity of situation demands some radical approaches. The great fall will stabilize and journey back to the upward slope of the curve may take about 18-24 months. There is lots of potential in economies of China and India. They will continue to grow at 8-10% range. World economies have to knit themselves in to one single mesh and synergize their operations. The great US economy cannot just stand and watch India and China to take the center stage. US would like to be very much involved in to the action.
More importantly since world economy is integrated today, it will be better if everybody joins hand and work towards getting economy back on rails.
- America should ask its banks and mortgage companies to renegotiate deals.
- America should find ways to re-plan the loans of house owners who are defaulting.
- Government should enhance its spending in China and more specifically in India.
- Real growth can take place only in India as lot of infrastructural deficit is discernible.
- American and European companies can come to India and be part of its growth.
- To cut costs western world should continue to outsource their operations to India and south pacific countries.
Virtual Web Symphony - A blog by a management and software consultant, SEO and SEM expert, E-learning evangelist and all weather Guru.
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