October 9, 2001

Will The Indian IT Industry Save India From Recession?
By Abhijit Dharmadhikari

Dear Readers, Greetings from India. In the last issue we dealt with a brief history of Internet in India. In the current issue we will throw some light upon the recession in the World Economy and where does India stand in the scenario. Here we go...

Though the World Economy has been leaning towards recession for the last two years, the Indian economy should remain relatively stable, the International Monetary Funds Organization declares in their latest report! The International Monetary Funds Organization predicts that the booming IT Industry will balance the Indian economy even in the current recession.

The IMF organization publishes The World Economic Outlook report every year. The report publishes an economic condition report of some leading countries along with the overall World economy. The current year's report was published prior to the attacks on the US, on September 11, and hence it doesn't contain the after-effects of attacks on the Indian economy as well as the World economy.

It is predicted that India will benefit from the fact that the Indian Economy is still somewhat independent from the World Economy. This is the reason why the rates of services in India have not been affected much despite the overall recession in the IT industry all over the Globe. On the contrary, due to the reasonable rates of services, the Indian IT industry is still getting brisk business from the rest of the World. Only the rate of profit has been decreased a bit, and it certainly will decrease the rate of development to some minor extent, at least so says the World Economic Outlook report.

In the year 2000, the rate of economic development in India was @ 6%. It is @ 4 to 5% in the current year, and it is predicted to increase in the years to come. In the year 2002, it is predicted to be @ 4.5%.

The World Economic Outlook report further mentions that the current recession in India is due to internal affairs and not due to any external forces. The government should constructively act upon the issues; which will facilitate the rate of economic development. Poverty is the biggest hindrance to the process of development. Though in the last 30 years the poverty rate has decreased, the very issue should be taken seriously in order to enhance further economic development.

Let's all hope we soon conquer this difficult situation in the World. We go hand in hand to make the World best place to live.

Abhijit Dharmadhikari