Recession

Since last six month everyone is talking about global recession which started from America and affected our country India also. Our IT / BPO / KPO sector companies which are mostly dependent on West as they provide services to American MNC's are under stress due to fall in demand and credit crunch in USA.

If India wants to recover from the recession and economic slowdown and wants to become a independent nation then we should initiate ourselves towards the innovation and that too in villages. Pilot project related to Manufacturing/IT/Services/Sciences/Agriculture must be started in village where 60% to 70% population of India leaves. Not only it will help to remove unemployment but also gives more strength to our economy in long term. We should also try to create jobs for rural India by starting new projects based on R&D in villages. It is the only way to recover from Recession and save ourselves from future recessions.

Industrial Situation

Now a days we knows that whole world is going through Global Financial Crisis and actual situation of industry according to my views is different than that. Let take an example of a factory owner who is manufacturing some finish product by use of raw material. In normal days (before financial meltdown) he used to purchase 100 kg of raw material which is sufficient for 2 months but now he is buying only 50 kg or less due to fear and the next person in line to whom he is selling finish product is also working in the same manner. The only fear is that whether they will be able to pay for the cost of material obtained as every transaction runs on credit basis. As banks have stopped giving payment on loose terms and conditions fear have increased. 

Barack Obama

Image via Wikipedia

Barack Obama is the new President of United States of America. When he started his campaign the financial meltdown of American economy started which turned into a Global Financial Crisis. Now when he officially joined the Office of President of USA he and his team needs to work hard to bring the American economy out of crisis and the returns its the nation its prosperity.

I hope he will be able to fight this menace and will bring lot of changes which will affect the whole world scenario.

Send me your views.

International Financial Crisis

BSE Sensex which is around 22000 (Twenty Two thousand) mark in March 2008 had gone below the level of 11000 (Eleven thousand). All the major scripts like Reliance Communications (RCOM), ONGC, TATA Steel, NTPC, SAIL, State Bank of India, Relinace Petrolium (RPL), Reliance Infrastructure, etc. have lost more than 50% of their 52 weeks high and some of them have touched their 52 weeks low or lost more than that. High Inflation Rate is other major factor which is standing behind slowdown. I hope that share market will recover after the election when new Central Indian Government will be formed. I hope by May-June 2009 Sensex will cross the 15000 mark.

Above mentioned slowdown is the result of dependence on FII money / Foreign Investors and financial failure of US economy players like Lehman Brothers, Goldman Sachs, AIG International etc. Even many other European & banks/financial institutions of other countries are also seeking help from governments of their respective territory. Some banks and financial companies have received the help from central banks of their nation to save themselves from bankruptcy. Before the slowdown whole world is working in the style of American system which is failed now and due to same whole world is facing financial crisis.

Still I think the financial crisis has not shown its full powers and can lead to bankruptcy of some nations and failure of financial/banking/insurance companies worldwide. IMF, World Bank and other international financial organizations are worried and looking for ways to save the whole world from financial crisis which happens because of virtual creation of assets and too much over estimation of assets or we can say a hype of too much over estimation by private sector players without any intervention, monitoring by Governments of their respective countries.

In long term the unemployment, Inflation, political & other concerned crisis are not estimated till now which have much bigger impact on society and humanization.

Lets come forward to save our world from this crisis and efforts should be made that future generation will be able to save themselves from this kind of problem. Long term financial policy on national and international levels needs to be designed keeping in mind the safety aspects and interest of investors.