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.


Anonymous said...

hmm...looks like people in that sector have to start looking elsewhere for jobs..(saying this coz that's the way that it is most affected to me: final placements in our college.)

but on a more serious note, i guess that was known all along, until and unless indian government doesnt start IMPLEMENTING most of its plans and blueprints that are kept lying in some governmental office licking dirt, nothing is going to happen.

this is a very similar situation to that of what happened in '97 in SouthEast Asia.

Omar said...

it seems that the USA tricle down effect will suffer all over. but the IT industry in India is so huge and booming and the best in world in many ways with jobs and work and areas to work for would help this worklessness to minimize unemphlyment...