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India faces wave of defaults


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Niranjan Limaye
Deal ya no deal.
by Niranjan Limaye on Mar 14, 2008 01:56 AM

We Indians are so crazy of doing things US way, is rediff consider this as proud factor? OR its a beginning of larger crisis and should be looked at as a serious crisis and news? In US, market is fluent that it will eventually pick may be not in near future but 2/3 years down the line. In India, every anti-social element a.k.a. politicians are waiting to hog their share once it goes down. It would be lot difficult to bring it back to where it is today. Because instead of working seriously to pull market back, Im sure political system will waste many years (start with multiples of 10), playing blame game and gain its dirty share out of it.

I pray that weakening US dollar wont harm Indian market and able to survive this wave. Because this one would hurt badly compare to the pinch dot com burst gave to the fellow Indians.

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Welcome
Well, not quite right.
by Welcome on Mar 13, 2008 11:05 PM  | Hide replies

In India the underlaying asset values have not gone below the loan amount, whereas the asset values have US have gone way below the loan's principle amount. So, yeah, there may be delinquencies but the repos should bring in more revenue for the banks.

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anil b
RE:Well, not quite right.
by anil b on Mar 14, 2008 01:53 AM
just wait when the real estate markets tank along with the IT industry , then a lot of home and car loans will be in trouble . It industry is secretly retrenching many and i guess that will increase delinquincies.

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Blazer
RE:Well, not quite right.
by Blazer on Mar 14, 2008 02:01 AM
The working sector got confused between a returning resident spending and the one who is locally working. Most cases the locals will get affected by such moves and the Overseas returned will manage to payoff debt with his savings

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Don johnson
RE:RE:Well, not quite right.
by Don johnson on Mar 14, 2008 05:01 AM
this is off set of having depended economies, india is currently totaly depended on US IT outsourcing and call centers. US economy is in recession and it will hurt india badly as indian growth is jus a hype to sell US goods in india as middle class as growing. Look at china there fundamentals are so strong that the virtually have no effect of US slowness. India will be in deep waters if US economy keep spiraling downward.

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Sharad
RE:RE:RE:Well, not quite right.
by Sharad on Mar 14, 2008 10:59 AM
Indian economy is not TOTALLY DEPENDENT on US IT outsourcing or BPO. These are just new sectors that have come up in the last one or two decades. India is a self-sufficient manufacturing/service/agriculture oriented economy, though its performance was at best mediocre in the past. Just now it has started looking into and integrating into the Global Economy. Without the Global Economy, India can continue to grow at a pace of 3 to 4%. It is only the high population growth that is offsetting the benefits of this mediocre growth.

If we continue to privatise Industry, Service and Agriculture sectors, and focus on building infrastructure, the Govt will be able to generate revenues to spend on social sectors like Education and Health, thereby increasing the standard of living.

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