Impact of Recession

yes vinod we should read this signs & respond swiftly or else we are going to face the downturn. We take pride in saying that Indian economy is insulated to some extent from the global environment, which is really not true, because we can very clearly see the impact of that for the past few months where there is definite indication of economic slowdown in the country. The slowdown is taking place as the result of rise in the costs of the materials all over the world, surging commodity prices, the impact of surging food grain prices.

Go though this nice presentation by mgmt students.....

Full Blown impact wherein, emerging economies are going to be blown away in the gale force of the recession. Read the signs (not the movie).

It's evident clearly in the televised mass retrenchment of Jet Airways employees (subsequently withdrawn due to pressure), even though hiring n firing is banned in India. Rumours of ICICI Bank's going down under (refuted by a costly media campaign done by ICICI), gossips of Unitech's defaulting on their payments and subsequent drop in its share price by 50% in a single day-(later attributed by its MD Chandra as a handiwork of  "criminal speculators"). Though subsequently, it had to sell out its telecom arm to raise funds (which incidently fetched higher valuation than its parent company, strange, huh).

 Retrenchment these days are getting a "make-over", to glamourise it and make it acceptable to the Indian public (media?)..... now it's called "Weeding out of Non-performers"..

The braveheart statements of the honchos of India Inc., PM, FM, etc. How Indian economy has the capacity to withstand it. Though the Central Bank had to surreptitiously change its priority during a weekend from "managing inflation" to "sustaining growth" and calling in the marines (Full reinforcement ie, CRR,SLR etc. cuts..

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