Global Meltdown & Its Impact On India

Lehman Brothers bankrupted, Washington Mutual Sold Out, Merril Lynch bailed out. In short, the entire US economy came down to its knees. Here, comes the era of The Second Great Depression 0r The Great Recession.
A very good afternoon all of you, this is Nikhil & I am here to express my concern over the Global Meltdown & its adverse impact on India.
As the famous cliché suggests, whenever the US sneezes, the world catches a cold. The same has been true with the Great Recession .With The Eurozone, UK and Japan officially in recession, the phenomenon has reached a global level & has been correctly named as Global Meltdown.
This global recession of course has its impact on the Indian economy. As this recession is believed to be one of the greatest financial crises in the history of world’s economy, India directly or indirectly, is going to be affected by this.
Some, like the US, the UK, Germany and Australia are key investors in India.
For instance, the US is India’s largest trade partner and foremost export destination, accounting for nearly 17 percent of India’s exports.
From the estimated growth rate of 9%, Indian growth rate has been reduced to 6.7 percnt. This is nothing else but, the prognostication of adverse impacts of Global Meltdown on Indian Economy.
The global crisis has adversely affected the FIIs who had invested in real estate and related firms. Many FIIs are heavily selling their holdings in numerous Indian companies and that is reflecting in gloom and doom scenario in stock exchange.
With the withdrawal of FIIs from the Indian realty scene, the real estate developers are in a shaky position. The US crisis is affecting Indian industries across all sectors.
While sectors like IT and export are directly affected, others like banks and the auto sector have seen a slowdown in demand.
Also, textile companies are suffering because of less demand from foreign countries and consequently less revenue from exports.
The year 2009 will also be very difficult for the tourism industry because of the economic situation prevailing worldover.
With such adverse conditions, India is definitely going to suffer in the long run because of this global meltdown. The only way to rescue Indian economy from the havoc of global meltdown is global restructuring not global meltdown.