China and India — suddenly vulnerable

While econ­omy (wors­en­ing is implicit) is such an over-talked topic that any head­line with this word has become an eye-sore to me, it remains an inevitable truth. And as I set­tle back to a rou­tine life, try­ing to catch up on past few months. There is no sign of a recov­ery in West­ern con­ti­nents but the seem­ingly immune devel­op­ing Asian coun­tries are now fol­low­ing suit. In the recent past, I had been won­der­ing how is the newly employed young gen­er­a­tion in India cop­ing with soar­ing prices and high cost of liv­ing. Till mid-2008, the Indi­ans thought they had evaded the wave of reces­sion but unfor­tu­nately not. The after effects of slow­ing down of West’s econ­omy have impacted India directly in exports, FIIs etc and indi­rectly in tighter US poli­cies for NRIs etc. The employ­ment sce­nario isn’t rosy and there seems to be worse things com­ing that Indi­ans are not pre­pared for. Not to men­tion the scary sit­u­a­tion for Indi­ans abroad who might be forced to return to their home­land mostly to find out that they are prob­a­bly over-qualified for the avail­able posi­tions. The reper­cus­sions are innu­mer­able and unfath­omable. I am mostly inter­ested in how the sit­u­a­tion unfolds for India and China. An inter­est­ing read on the subject–

Asia’s two big beasts are shiv­er­ing. India’s econ­omy is weaker, but China’s lead­ers have more to fear

THE speed with which clouds of eco­nomic gloom and even despair have gath­ered over the global econ­omy has been star­tling every­where. But the change has been espe­cially sud­den in the world’s two most pop­u­lous coun­tries: China and India. Until quite recently, the world’s fastest-growing big economies both felt them­selves largely immune from the con­ta­gion afflict­ing the rich world. Opti­mists even hoped that these huge emerg­ing mar­kets might pro­vide the engines that could pull the world out of reces­sion. Now some fear the reverse: that the global down­turn is going to drag China and India down with it, bring­ing mas­sive unem­ploy­ment to two coun­tries that are, for all their suc­cess, still poor—India is home to some two-fifths of the world’s mal­nour­ished children.…

Full story here.

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