Friday, January 25, 2008

Recession .... what recession?

The media is full of reports on the economic downturn in the US and speculation whether the country is the midst of a recession or on the verge of one. The collapse of the housing market and the sub-prime crisis and the resulting impact are making news headlines daily.

But if you are in India at this time, all of this seems like fiction. All the IT services majors - TCS, Infosys and Wipro have announced 9-month earnings that are exceeding Billions (Yes, with a "B") of dollars and high rates of revenue growth despite a weaker dollar. Housing market is crazy with the demand continuing to skyrocket. Jobs in the IT and ITES sector are plentiful and candidates are few causing double digit wage inflations. Mutual fund investments are giving 50-60% annual returns.

Consequences of a flat world?

1 comment:

Todd said...

The 'flat world' is real (an amazing book by the way, really opened my eyes). With the US in recession, somewhere in the world there is an economy on the upswing and India seems to be the beneficiary. India must be a fascinating place now as outsourcing from the US has increased and the economy is exploding. I wondered if the US culture was filtering to the young kids? You mentioned Valentine's Day. That is wonderful to hear young men courting women, and also seeing there is a retail opportunity. Maybe it's all the Valentine's ads being sent over...

Todd Lentz