Thank god it's recession!
GLOBAL ECONOMY : IMPACT ON INDIA
With banks in the US and Europe tumbling like ninepins and with the recession setting in in America and elsewhere, the central banks of most of the key economies in the world are on a war footing to infuse more liquidity, reduce interest rates and arrest the global enonomic downslide.
In India too, the Rsserve Bank of India has been trying its best to weather the vagaries of global recession. Yet in the hindsight, amidst all the showering of bad news by pink newspapers of job cuts, pay cuts and the erosion of wealth of Indian billionaires, one wonders if it is really such a time of despair or that this recession is ideally a boon in disguise for countries like India and its common men. Consider this: even a few months back, when international oil prices were hovering in the region of $140-$150 a barrel, inflation in India was literally leapfrogging. Indian oil companies on account of their under-recovery from retail sale of oil were bleeding to death and were facing an estimated loss of a staggering a Rs two lakh crore by the end of current financial year. Thanks to the looming recession in the US and Europe, international oil prices have literally collapsed to the region of $55-$65 a barrel, thus saving Indian oil PSUs from the chances of bankruptcy. Accepted that retail price of oil has not yet come down, but that the oil-PSUs have started making profit and there is reduction of under-recoveries is news good enough, as no economy in the long run is sustainable if for cushioning the masses from volatile international prices, its blue-chip companies become bankrupt. That possibility is gone now. Lower oil prices also guarantees faster growth of Indian economy....Continue
With banks in the US and Europe tumbling like ninepins and with the recession setting in in America and elsewhere, the central banks of most of the key economies in the world are on a war footing to infuse more liquidity, reduce interest rates and arrest the global enonomic downslide.
In India too, the Rsserve Bank of India has been trying its best to weather the vagaries of global recession. Yet in the hindsight, amidst all the showering of bad news by pink newspapers of job cuts, pay cuts and the erosion of wealth of Indian billionaires, one wonders if it is really such a time of despair or that this recession is ideally a boon in disguise for countries like India and its common men. Consider this: even a few months back, when international oil prices were hovering in the region of $140-$150 a barrel, inflation in India was literally leapfrogging. Indian oil companies on account of their under-recovery from retail sale of oil were bleeding to death and were facing an estimated loss of a staggering a Rs two lakh crore by the end of current financial year. Thanks to the looming recession in the US and Europe, international oil prices have literally collapsed to the region of $55-$65 a barrel, thus saving Indian oil PSUs from the chances of bankruptcy. Accepted that retail price of oil has not yet come down, but that the oil-PSUs have started making profit and there is reduction of under-recoveries is news good enough, as no economy in the long run is sustainable if for cushioning the masses from volatile international prices, its blue-chip companies become bankrupt. That possibility is gone now. Lower oil prices also guarantees faster growth of Indian economy....Continue IIPM Arindam Chaudhuri 4Ps Business & Marketing Business & Economy Kkoooljobs Planman Media Planman Consulting Planman Marcom Planman Technologies Planman Financial Planman Motion Pictures GIDF The Daily Indian IIPM Think Tank
The Sunday Indian
The Sunday Indian
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