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Q.

How will the US recession affect India ?

Tags: india, us recession
Asked by Jeffrey, 08 Feb '08 11:51 am
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Answers (72)

1.

US recession will impact not only India but most of the emerging Countries which trade with US. Recession in US means low buying capacity, not buying even at low pricing, this will impact in many ways India. 1. 80% of India's export like handicrafts, textiles, jewellry, finished preceious stones and few engeering goods is directly to US. If US people don't buy these products will impact exports from India, consequently low production, and closure of the most of the export oriented companies. this is how US recession will affect India.
Answered by pushpendra singh, 13 Feb '08 09:35 am

 
  
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2.

USA Currency is globalised currency. Based on this currency, the exchange rate is fixed. If there is recession in us means Ie. the exchange rates for us dollar is less then the value gained on sales proceeds also less. If you are exporting Rs.4000 goods valued as $100 when you receive the money, because of recession the dollar rate has dropped from Rs40 to Rs.38. Only you are going to receive Rs.3800. Thus, Us recession will affect our Economy
Answered by murugesan kp, 14 Feb '08 03:25 pm

 
  
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3.

b coz india is very small & develops..
Answered by Deepak Pithadiya, 12 Feb '08 06:28 pm

 
  
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4.

It's just like transformers. If US trips, why India only, most of the countries will suffer. My interest is to see how G7 handles this situation.
Answered by Sukhen Mitra, 13 Feb '08 09:57 pm

 
  
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5.

Inflow of US$ and outflow of Indian products and services slow down and for some it stops.
Answered by n joe, 13 Feb '08 03:41 pm

 
  
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6.

India is a service based economy.the service sector such as BPO,KPO nd IT is most imp pillar of the indian economy today nd the major clientage 4 ths sec is frm US...recession will hit these sec hard nd there'll be significant fall in its growth rate resulting in lesser employment .also india may visualize fall in foreign investment which will affect the predicted annual growth rate of the country.
Answered by kashish khanna, 11 Feb '08 01:52 pm

 
  
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7.

Less USA based outsource business to India will effect those all companies they are based on USA business. Drop in share pricess of those company, indirectly we have similar impact on Indian Ecomony, if recession occur in US.
Mukesh Chauhan (Shimla)-HP India
Answered by mukesh s chauhan, 11 Feb '08 02:47 pm

 
  
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8.

our major software exports say upto 70% are made to USA. In case of recession this sector should be mostly affected. ofcourse other industries will haves its own impact. since USA being the major importer.In case US companies show a slow growth it will definitely impact our stock market also. I feel india will be having a impact due to US recession but will be a sustainable one.
Answered by naduvath sudhish, 13 Feb '08 06:43 pm

 
  
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9.

us has got lateral support through diff. sector that's it.
Answered by RAVI, 12 Feb '08 04:11 pm

 
  
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10.

Becuase we are living in global economy. Earth is flat.
Answered by VidyaShankar H, 11 Feb '08 11:22 am

 
  
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