Go Back   Team-BHP > Around the Corner > Shifting gears


Reply
 
Thread Tools Search this Thread
Old 9th February 2008, 12:01   #16
LLL
BHPian
 
Join Date: Mar 2005
Location: Delhi
Posts: 634
Thanked: 2 Times
Default

Quote:
Originally Posted by greenhorn View Post
IT salaries had been driving a real estate boom. Rents have been gone through the roof, even in remote areas. and consequently land values. Hope this reins in things....
Real estate boom has been driving a boom everywhere - cement, steel, transportation, construction material etc
with downturn in real estate, all other sectors are slowing down and consequently we will land in recession.

Lets hope that it doesnt happen.
LLL is offline   Reply With Quote
Old 9th February 2008, 12:08   #17
Senior - BHPian
 
Join Date: Jun 2007
Location: Kochi
Posts: 2,147
Thanked: 142 Times
Default

Quote:
Originally Posted by hondadude View Post
IT & IT services form a very small part of GDP in India. Indian economy has been doing really well outside of IT.
But most of this driven by incomes from the IT sector. Take out the guys working in IT and ITES and strength of this forum goes down by 3/5. Want to contradict me there?

Quote:
One way to look at this is, a few years back IT companies figured prominently in top 10 companies as far as market cap is concerned. I remember Infosys occupied the top spot for reasonable amount of time. Now, Infosys is no 13 and other IT companies are after that.
Hmm. Yes. You do have a point. But there is a theory in economics, which says that for every additional Rs. 100 spent, the economy grows by Rs. 200. And IT/ITES employees have the highest disposable incomes among all sectors. (Imagine taking the number of years of experience, multiplying it by anything between 2 and 5, and adding a "lakh" at the end of that figure to arrive at annual CTC). For every job paying 4 lakh p.a. lost, the economy shrinks by Rs 8 lakh. And when the economy shrinks, savings shrink, which means even less money in the financial sector, means less money chasing the stock markets, means lesser share prices means lower profits for the financial sector employees means the next higher paid class of people take a pay cut / job loss .... and so on ... the dominoes continue to fall.

Quote:
So even if there are some challenges in IT sector, Indian economy should chug along quite nicely.
If the Indian economy can find a way of employing the IT sector from within India we may not be so hard hit as the we think we may be.
BaCkSeAtDrIVeR is offline   Reply With Quote
Old 14th February 2008, 00:20   #18
BHPian
 
Sush's Avatar
 
Join Date: Apr 2005
Location: Noida, New York
Posts: 308
Thanked: Once
Default

Quote:
Originally Posted by Surprise View Post
Will this happen in INDIA?
Not exactly but some correction will definitely take place. Builders in Indirapuram are having a hard time selling their flats.
Even the home loan ROI are going southwards.
Sush is offline   Reply With Quote
Old 16th March 2009, 13:52   #19
BHPian
 
kannan666's Avatar
 
Join Date: Aug 2007
Location: KA-02
Posts: 934
Thanked: 66 Times
Default

Well, here we are one year down the line and correction most certainly is here !

And so is recession !
kannan666 is offline   Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
Effect of Recession on our Jobs lambuhere1 Shifting gears 512 12th December 2011 20:31
Innovative business ideas in this time of recession isldhn Shifting gears 25 11th October 2009 13:19
Recession in Dubai leading to migrants abandoning cars @ airport & fleeing country!!! supremeBaleno Shifting gears 31 27th April 2009 13:43
Hesitation, Confusion, Recession and then the Decision – ‘Budget’ ICE for a Swift Vxi d_himan In-Car Entertainment 16 19th February 2009 22:06
ANHC- Full Interiors, Rims & HIDs? Or should i let the recession get the best of me? Speeding@160mph Modifications & Accessories 16 22nd December 2008 10:48


All times are GMT +5.5. The time now is 01:06.

Copyright ©2000 - 2017, Team-BHP.com
Proudly powered by E2E Networks