Jump to content

The crisis now is worse than in 2008, says India Inc


Recommended Posts

Posted

I dont know how much truth in below article from Buseness Standard... But i always believed that eventually we have to face the heat on Recession... in 2008 we didnt had that much effect..less Lay off's etc

Some still hopeful, most say lack of confidence has made the difference. Corporate India has added a new word to its jargon: the C-word. Ask any CEO or banker about the difference between the slowdown in 2008 and now, the answer is almost repetitive: 廗e can still live with the S-word, but the C-word has made all the difference this time?
http://business-standard.com/india/news/the-crisis-now-is-worse-than-in-2008-says-india-inc/459230/
Posted

External factors aside, the massive interest rate hikes would definitely have a big impact on the local economy in terms of lowering growth rates. Hopefully, the efforts to curb inflation have just started since fiscal measures are a temporary band aid and actual supply of goods is what actually brings down inflation.

Posted

For folks that work in MNC's that have their ODC's in India I think it is relatively ok. India is also being hit but mostly it is the service sector and the manufacturing industries. I am actually concerned about the fall of the Indian Rupee. Something needs to be done to stop it. Anyone know why it has been free falling like this?

Posted

A small example. A flat in dwarka ( outskirts of Delhi ) used to cost 18 lacs in 2001, today it's priced at 80. The rent in 2001 was 7k and today it's 8k. Explain ? What's the ROI ? In the long run your repayment of property should be a little less than the rent but here you can do the math and explain to me how it can sustain and how does it make sense ?

Posted
A small example. A flat in dwarka ( outskirts of Delhi ) used to cost 18 lacs in 2001, today it's priced at 80. The rent in 2001 was 7k and today it's 8k. Explain ? What's the ROI ? In the long run your repayment of property should be a little less than the rent but here you can do the math and explain to me how it can sustain and how does it make sense ?
There is hardly any sense when you discuss property prices.The south delhi plots were sold to people for just few thousand of rupees in late 60s and early 70s now they cost around not in millions but even 100s of millions.No economist can explain the reason for such sky rocketed property prices.
Posted
I am actually concerned about the fall of the Indian Rupee. Something needs to be done to stop it. Anyone know why it has been free falling like this?
My guess: Wild swings like the oil prices earlier & the Rupee now are mostly speculation with an underlying reason that caused some concern in the first place. With our growing economy and the recession in the western countries, our demand for imported goods (coal, oil, ps3s u name it) rises by the day while the exports are affected by the recession in the west.
A small example. A flat in dwarka ( outskirts of Delhi ) used to cost 18 lacs in 2001, today it's priced at 80. The rent in 2001 was 7k and today it's 8k. Explain ?
Mostly speculation as well, although i'm guessing there is another reason that prevents the market from corrections: corruption. The medium/big builders have the backing of public sector banks because of their close connections with ministers/MPs etc and hence can keep the prices of their new/existing properties & investments high while also feeding a percentage of their profits to the politicians, thus driving up costs. With demand higher in a fast growing economy and the relative lack of newer urban centers for a population as big as ours, the individual properties catch up with the higher rates rather than the builders lowering prices to cover costs. The high savings rate among the middle class and the emphasis on property as a perennial investment also affects the price at the end of the day.
Posted

Population growth will keep the demand high for a very long time, be it land or any other resource. There just isnt enough to around which explains the sky high prices.

×
×
  • Create New...