Slowdown versus Crash!

The Wall Street Journal last Friday had an article titled ‘Indian economy slows’. In India the GDP grew only 5.3% last quarter, compared to 7.6% the previous quarter. The USA GDP growth was a MINUS 6.3% for the same period! Let us face it. The US economy is plummeting downwards, while India is undergoing just a mild slowdown. I think India will withstand the global recession much better than expected, as there are no big banks holding worthless securities. (Strict government regulations do not allow speculative trading). As for the outsource work to India drying up, it is not going to happen. The foreign corporations have become so dependent on it to drop it. The best example is the case of Satyam Computer Services. Despite of the revelation of an Enron like fraud, the company is still in operation as none of its big customers could afford to drop Satyam and go elsewhere!