[LLL]

Originally Posted by greenhorn

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.

[BaCkSeAtDrIVeR]

Originally Posted by hondadude

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?

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.

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.

[Sush]

Originally Posted by Surprise

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.

[kannan666]

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

And so is recession !