United Stated of America is trumbling.It is a bit hypothetical to say but nonthless it is true that the bad days have started for US way back in 2008.The recent Debt crisis and the consequent downgrading of US govt. by 'Stndards and Poor ' is another step in the process.
This would have huge repercussions on the world as a whole as all most all the world powers are either directly or indirectly linked to US.The global trade is heavyly dependent on dollor.Any fluctuations in its value would severly impact the trends in trade.The countries which are dependent on US market may lose heavyly.China is one of them.Majority of its exports goes to US, it has to face tough times.
As far as India is concerned ,Our IT industry could face some problems as it is closely linked to US.Also our stock markets may go down but for a shorter period.But in the long run this would be helpfull for Indian markets in particular, and Asian markets in general as these are the best alternatives investment destinations to US in current scenario.Despite these facts,there is an inherent advantage for India in terms of crude oil.As the demand for it drastically goes down due to US recession,its price may fall sharply.This could be a great boost to our import bill as more than half of our imports by value is crude oil. This is a respite for indian economy and the current inflationary trends.The money which is saved in this process can be diverted to social sector.Thus this time there are more advantages than threats to India by the crisis.
USA is trumbling .It doesnot mean that all the people would go homeless,foodless or jobless .But it means that the hegemony of USA in the world economy is diminishing.In the short run this may create problems to the whole world .But in the long run it is not.Certainly the Asian gaints would fill this vacume .We should be happy that India is one among them steering the global economy from the front.
This would have huge repercussions on the world as a whole as all most all the world powers are either directly or indirectly linked to US.The global trade is heavyly dependent on dollor.Any fluctuations in its value would severly impact the trends in trade.The countries which are dependent on US market may lose heavyly.China is one of them.Majority of its exports goes to US, it has to face tough times.
As far as India is concerned ,Our IT industry could face some problems as it is closely linked to US.Also our stock markets may go down but for a shorter period.But in the long run this would be helpfull for Indian markets in particular, and Asian markets in general as these are the best alternatives investment destinations to US in current scenario.Despite these facts,there is an inherent advantage for India in terms of crude oil.As the demand for it drastically goes down due to US recession,its price may fall sharply.This could be a great boost to our import bill as more than half of our imports by value is crude oil. This is a respite for indian economy and the current inflationary trends.The money which is saved in this process can be diverted to social sector.Thus this time there are more advantages than threats to India by the crisis.
USA is trumbling .It doesnot mean that all the people would go homeless,foodless or jobless .But it means that the hegemony of USA in the world economy is diminishing.In the short run this may create problems to the whole world .But in the long run it is not.Certainly the Asian gaints would fill this vacume .We should be happy that India is one among them steering the global economy from the front.
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