We have an Essay competition on the Topic- Market meltdown & it's effects on Indian Economy?

Given the latest economic down trend, Indian economy will be affected due to the inter-connectivity of the nations.

Post Liberalisation, Indian Economy has opened up and since then FDI, FII flows have increased. Indian Investments in foreign assets and corporates have also enhanced.

Thus, India will have to face the consequences of the current bearish trends.

However, India is better insulated as compared to other nations.

Indian Economy's dependence on the USA is far less as compared to others nations of the World.

Moreover, India is more self sufficient. Internal economy of India is strong enough to sustain even under enternal uncertainities.

The maxiumum impact is what India is facing today:

Fall in Equity Markets

INR Depreciation

Slump in Commodity markets

EFFECT ON INDIAN JOB MARKET:

IIMs are the worst hit, by direct placement offers turning sour.

Lehman Placements in IIM are affected, similar is the case with other foreign banks who have approached the Indian Premier Institutes.

As for the other MBA Institutes, the impact of overall Job Market getting hit, influences them too.

Booming Employment Sectors are now on hold. With Rising Inflation, Corporates are playing a Wait and Watch Game.

People's preference for Indian Corporates is increasing as compared to overseas Org.

Its all a matter of time, eventually when things start looking up/better, the boom is likely to regain its position.

Hope this helps.

- Realty sector, one of the worst hit

- Stock market meltdown from 18000 pnts to below 7,500 pnts mainly due to poor performance of companies (due to global recession) and negative investors sentiment

- Slowdown in industrial growth as the latest IPP numbers show

- Banking stocks take a plunge due to rumours about a large bank going bankrupt