India at bigger crisis..

The whole world is being squeezed by the imp called inflation and world nations are suffering great pains to rebuild their economies and start from the scrap to make the people feel their investments and savings are secure. Some of the countries have also taken strict measures to make sure their citizens don't suffer due to unemployment by restricting foreign citizens from getting into the companies and other firms in their countries. When it comes to a nation, there is nothing wrong in being selfish and planning for the people and nation's progress in the future. And that is exactly what the world nations have started to do. Many IT firms based in India are almost completely dependent on U.S and European markets for their projects. Now, with U.S.A being badly affected by financial crunch, the Americans prefer saying NO to outsourcing, which means the danger light has been switched on for the Indian firms. Indian companies are so shrewd they knew they would be required to face a situation as bad as the one they are experiencing now beforehand and tried their best to transfer their sources to other parts of the world. Unfortunately, this effort was not completely successful and as a result, in spite of all their hard work, our firms had to face some losses in terms of foreign income and share values. This has been reflected by the firms' stands on recruitment processes, for which a temporary halt has been put. Thus, there is a blockade for foreign income to get into India now. To add to this crisis which is quite common in all the countries at present, the terror attacks on the three of the best luxury hotels in Mumbai has resulted in many foreigners hesitating to even turn back to India again in the future since the targets were these foreigners and more specifically, Israelis, Britons and Americans. Life is more important than tourism. So, we can expect a strong depreciation in the quantity of foreign inflow due to terror attacks and the already existing economic crisis, which means India would be the most affected nation during this crucial period. Let us hope the recovery techniques are considered quickly and handled deftly by our new Finance Minister, who is also our Prime Minister.

Meltdown chills down..

Finally, the hopes on stocks are increasing. Bombay Stock Exchange witnessed some good moments after almost a series of stock market crashes in various forms. Now, all those who rely upon stock market as their only source of income can have a sigh of relief. The pressure has been vented out very carefully by the Finance ministry of India. Applauds to the Finance Minister who has, for once, been so strong in his position and kept supporting the markets all the time with positive comments. His words gave the investors all the confidence they needed to make sure stock market is still the best place for investing their immense wealth. SENSEX shot up to 15,000 few months back and that was when inflation started going down marginally. Suddenly, the effect of Western policies on trade and commerce resulted in the increase in the strength of U.S.D against INR which set the spark for the inflation to reach an index that has never been touched before. When I expected inflation to reach 15% in another couple of months, I was surprised yesterday to find the figure actually going down. There was a marginal fall in the inflation figure and at last, it reached 11.8% yesterday after a long period during which the prices of fuel and food was going up faster than Ferrari. But, there is an aspect of the market which I don't understand even after putting my mind on it for a very long time. American economy is crashing down fast and inflation in India has showed some sign of recovery. Then why did the value of U.S.D go up against I.N.R? Inflation directly reflects the value of currency. If inflation goes down, the value of I.N.R should actually go up but it is happening the other way. Everything is going down in India! Soon, we can expect the prices of all the commodities to go down. Let us hope the day is just too closer from her.