This is just a layman's attempt at understanding this word called 'RECESSION' and its significance in the Indian context...This particular word has been figuring a lot in my consciousness of late,unfortunately so...
A word of caution though...Considering my limited understanding of economics,you may find this extremely naive...Please correct me wherever you deem fit to do so...
Circa 15 August,1947...A nation came into being..Close to hundred years of struggle against the despotic colonialists finally bore fruit..We became an 'Independent' country...61 supposedly prosperous years hence,how many of us have actually bothered to mull over our exalted state of freedom...Lets just confine ourselves to our economic freedom for now...
We stake claims to being one of the foremost economies in the world...Statistics too,would lend a lot of credence to our claims..But then,statistics can be deceptive...'India Shining'..A well documented phrase that lured us into a false sense of security not too long ago..This illusionary state of economic freedom,this bubble of comfort bursts suddenly when the US administration announces a marginal cut in its interest rates on property loans...What follows is unprecedented...Huge multinational conglomerates fall like nine pins...India isn't aloof to the crisis either..Our stock market comes crashing down like a pack of cards..One moment,optimism is scaling new highs(our very sensitive SENSEX breaching 21K,by no standards a mean feat)..One blink of an eye,and the worst of pessimists are left confounded by the scale of the economic crash...They say that the markets are driven not only by monetary 'bull'ishness but also by sentiments across the investor's spectrum..A simple question..Are our sentiments so frail so as to be sent into immediate disaster mode when something happens in a country a few thousand miles away..
Industry experts are optimistic about the crisis passing out soon..But their guarded optimism doesn't hide the fact that we are in a hole and a very deep one at that...
"Sensex plunges further amidst weak 'global' cues....."
Parental Advisory: Get used to this pretty soon...Coz our 'Booming Independent Economy' ain't going anywhere anytime in the near future....
