Will global recession impact India or not?

While India has experienced some effects of the global recession, the country has not suffered as severely as many had anticipated. There is an impact on the jobs front with global layoffs, particularly in the tech sector impacting employees in India. Some Indian start-ups have also had to lay off employees. However, the Indian economy leans towards services and not manufacturing which helps mitigate risk and makes it more insulated against downturns.

Moreover, with a growing young population and middle class, one could expect demand for manufactured goods to remain steady. Before the global financial crisis of 2008, GDP growth rates were soaring in a majority of the world's economies. This was primarily because of the increase in the consumption of goods and services. Even though the consumption rates were high, there was a huge demand deficit, which increased commodity prices.

The resilient nature of the Indian economy will lead to a favourable economic growth in the country. India would therefore not be as seriously affected by the global recession as other nations.

-Sridhar Laxman, Founder, Lucid Minds Coaching