Financial Crisis hit in US - Is India taking it seriously or will India face the same

[bidhanojha]

Service sector (which is the biggest sector in India) has dependence on American market. Others (manufacturing, healthcare, banking... ) work almost independently....

regarding BFSI... it will have a ripple effect due to credit crunch in international markets...

[ramsy]

how does india protect itself from the crisis that is taking place everywhere??? the european countries are getting ready for the crisis and the meeting of the four financially superior countries have'nt resulted in any news....even russia is facing the turmoil and their stock markets are having a bad time too...

[DesiDude666]

India shouldn't be too affected since the country is not a hub for FDIs. China and Asia Pacific, the region which severely depends on foreign money should be directly affected by teh possible American recession. There will be some investment slowdown, but the country's core economic strategy lies in generic growth, not FDI.

[dimpisanghavi]

the entire global financial m arket is in crisis...but india won't be affected too much..bcoz r rbi doesn't allow banks n institutions to have large exposure on mortgages..so we r safe..but fiis sucking money out...is the main concern here...it have pulled 6 bn worth of stocks ffrom r markets
we need them to prosper...n grow...
looking at the current situation achieving 7 % growth is also very difficult..

[SHAIL2008]

the financial crisis has hit US market to the extent dat
5 of big companies of wallstreet
bearStearns,freddie mac ,fannie mae, merill lynch, lehmann brothers...
were on verge of collapse and filed for bankruptcy. some of the companies like merill lynch was acquired by jp morgan,bearStearns acquired by bank of america.fannie mae and freddie mac got us government assitance,lehman brothers went bankrupt .......its lehmann brothers asian operational company being acquired by Nomura .
The largest insurance co. in us also severly hit by us credit crisis ...so government acquired 80% stake ......all dese happens becoz of 3 main reasons
1. excessive leverage
2. insurance bad loan policies
3. financial reengineering..
Now becoz the downturn in us economy its affecting indian economy too.rupee value is depreciating now recently 1 $ =48.72 Rs..FII's starts selling off their securities leading to credit crunch in the market mkt.and government is amending monetary policies so to keep up the stock market ..recently cash reserver ratio has been reduced to 8.5% means it ll infuse Rs 20,000 cr on 11 th october to the banks as expenditure.

[amrish.patel]

According to me, India will not face much problem of the global crisis. However the stock market will face the problem due to the FIIs. India is developing at 6-8% p.a as compared to the growth of other giant countries like USA, France.

[kedar786]

indid will not face the same prob , i think like ths.......

[navneet kumar]

After globalisation indian economy is heavily depending on united states of america for export of its product and FDI and FII and at this time when america is facing liquidity problem these two aspects will be effected because they will hold their money . This will also effect the employment in our country. so i think that the problem is serious and we have to take it seriously.

[UBERMANAGER]

India has a lot of investment that is actually 'stuck' for the time being, for example by the CDC so the relationship between the 'western' financial system is actually more complex than meets the eye.

[saurabhp22]

The fundamentals on which indian economy was growing are pretty strong. The problem is of global factors - you can't stop them from affecting indian stock market as there are many global investors - so this is time to chill..no to take so much tension and just buy more and more as market falls.