Decoupling happening in India?
In case you haven’t heard the term before… Decoupling was the theory set forth by some eminent economists… This theory states that the emerging economies like BRIC (Brazil, Russia, India, and China) would continue to grow and eventually become independent of USA and Europe. Personally I was and I am skeptical about this theory…
The data from recent past shows that emerging economies fell hard… The pains were more visible across these economies than across USA and Europe. But the latest economic indicators point towards a definite trend of growth even when the developed world continues to grapple with foreclosures and falling demand…
One week in my trip of India and I don’t see any signs of recession or lack of demand…. The malls are full with customers and goods (mostly made in India)… Property prices in the commercial and residential space have come down a bit but no one seems to be noticing that as of now….. Frenzied pace of construction of the public infrastructure (in and around Delhi)… From mobile phones to cars…Sales are hitting new highs every month…. Well if this is recession…. Bring it on :)
Anyways here is a story I saw on one of the many news channels here….Headlined Maruti buys Nano… curious I stopped my channel surfing for a bit … Apparently a cobbler in Maharashtra named Maruti is planning to buy the much anticipated nano… He plans to buy the top end version and let me put this in quotes “He plans to make full cash payment of Rs140, 000” for the car… NO LOANS all savings….
A population averse to instant gratification (barring the so called generation Y) of loans….
More savings…. Real income growth… More localized production… Massive internal consumption…. Old but prudent banking system….Young educated population….
India might just pull through (and with ease) the toughest economic conditions the world has seen since World War 2…
The data from recent past shows that emerging economies fell hard… The pains were more visible across these economies than across USA and Europe. But the latest economic indicators point towards a definite trend of growth even when the developed world continues to grapple with foreclosures and falling demand…
One week in my trip of India and I don’t see any signs of recession or lack of demand…. The malls are full with customers and goods (mostly made in India)… Property prices in the commercial and residential space have come down a bit but no one seems to be noticing that as of now….. Frenzied pace of construction of the public infrastructure (in and around Delhi)… From mobile phones to cars…Sales are hitting new highs every month…. Well if this is recession…. Bring it on :)
Anyways here is a story I saw on one of the many news channels here….Headlined Maruti buys Nano… curious I stopped my channel surfing for a bit … Apparently a cobbler in Maharashtra named Maruti is planning to buy the much anticipated nano… He plans to buy the top end version and let me put this in quotes “He plans to make full cash payment of Rs140, 000” for the car… NO LOANS all savings….
A population averse to instant gratification (barring the so called generation Y) of loans….
More savings…. Real income growth… More localized production… Massive internal consumption…. Old but prudent banking system….Young educated population….
India might just pull through (and with ease) the toughest economic conditions the world has seen since World War 2…
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