The recent recession has had a Domino effect across the globe. And while most do not expect to come out of this situation any time soon, India Inc. might be able to come out faster than other global companies. Experts predict that by the end of the year 2009, India will be among the very few countries to emerge mostly unscathed.
The world is Flat, author and journalist, Thomas L Friedman, wrote in his book by the same name. Here Friedman talks about the phenomena of ‘Globalization 3.0’ and how the world is ‘flat’ in the sense that globalization has leveled the competitive playing fields between industrial and emerging market countries. In a nutshell, the economic markets were all competitors have an equal opportunity to sell their products in a free market, without any restrictions. This phrase can be affixed to another phenomenon that is currently gripping the world: the on going recession. The recession in the United States has caused a ripple effect in every country with job cuts and cost cutting being the most glaring repercussion. Like most organizations, across the globe India Inc., too, is following a similar path. However every dark cloud has a silver lining. And for India, this dark cloud’s silver lining is a better financial and organizational future. Though this statement may sound exaggerated to many experts across India Inc, say that this slower economic growth in India will end with a positive high, as India will be among the many countries that will ride the storm of recession.
With several organizations, across the globe laying off employees, it’s but natural for anyone to predict that the sole cause of this is recession. And when the same situation is being played in India, you feel that India too, is going through the same situation. However, experts say that though there are signs of downsizing India actually is not facing recession. They say that this situation has arisen merely due to the slowing down of the Indian economy.
The current situation in India is expected to get better as India is going through a period of slower growth and confirms that things will start to look up in the near future. India will see higher growth rate once the current situations settles down all by the end of the year 2009. It’s not just Chakraborti or Handal that expect India to emerge victorious. Copal partners too share their opinion. He gives his perspective. India’s exposure to global trade is low which would help soften the adverse affect of the slowdown. Moreover given the favorable demographics and long term growth potential it is expected India to attract significant investments particularly for infrastructure development which should help improve productivity and competitiveness of the Indian industry.
An organization that provides customized IT solutions adds that there will be significant change in their vertical as well. The focus will be on the domestic market rather than exports. In the short run, revenues and margins will be affected. However in the long run, it will lead to good industry practices as bad practices will be weeded out.
While India will come out mostly unscathed after the slowdown experts are predicting a positive outcome in various fields. They say that once India Inc. gets back on its feet, things will get better for industries as well as for organizations and their employees. Many say that this will also be the time when other industries will also witness an increase in value in terms of availability of various job opportunities for potential employees and job seekers.