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Is India a safe haven during recession?
By siliconindia
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Wednesday, 10 August 2011, 00:39 IST |
25 Comments
However, Indian Inc is confident about the fact that there will not be a repeat of 2008 this time and is hopeful of India's ability to cope. The Indian corporate are better prepared this time to withstand the negative impacts of the debt-ridden U.S. and European markets. IT, pharmaceutical, real estate and infrastructure sectors are expecting a slowing in growth and the companies are taking a wait and watch attitude with plan B's to cope with any adverse impacts of the possible global economic meltdown.
It's also reported that India will pitch for a significant upgrade of its credit rating by global rating agencies in an attempt to compensate the negative consequences in the market following the U.S. downgrade. World's leading rating agencies Standard and Poor's and Fitch Ratings are expected to review India's rating mostly in November. India has a ranking of BBB- given by S&P, the lowest investment grade.
However, rating agency Crisil said funding cost for Indian corporates are expected to become expensive following the downgrade of U.S. sovereign rating by S&P. The question remains to be answered if the emerging markets such as India can once again act as the pillars of global economy during the financial crisis.
