The rapid increase of prices in the share market experienced in 2007 (Sensex shooting from 6,000 to 21,000 points) was all fake and did not have a substantial root cause (India's real growth in terms of infrastructure, etc.)
It was all owing to the millions of dollars invested by the Foreign Direct Investors (FDI). When the FDIs pulled out their funds from India, the economy came back to where it stood. It is dropping as fast as it had climbed up before (Sensex back from 21,000 to 10,000).
The Indian economy is like an elephant, due to the size of the country; therefore it can move up slowly, but it cannot run. The roots of the Indian economy needs to be strengthen, then only can it survive in this age of globalization.
Labels: My Thoughts