Indian stock analysts and economists tried to sooth the growing fears of Indian and international investors as the Sensex. World markets were torpedoed as growing fears about the state of the world's largest economy, the United States, started to reach panic levels.
There is growing concern that the United States might not only hit a recession, but a nasty one at that. A major recession in the United States would cripple the global economy, especially those in rapidly growing nations funded by Western investment such as India and China.
Analysts in India tried to make the point that the Indian economy didn't change overnight, so there is no reason for this panic. This is true, but if the United States suffers through a crippling recession then India will take a beating due to decreased investment in the country. When a company is trudging through a rough patch due to a bad economy, the first thing that they usually do is cut their research and development.
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