US Recession and Indian Economy

Readers Question: Will a Recession in the US cause a recession in India?

Firstly, it is not guaranteed that there will be a recession in the US. See: - why is the US not in recession?

However, if the US does enter into recession, I don’t think this would be sufficient to cause India to enter into a recession.

Firstly, the Indian economy is growing rapidly.

Exports to US are a relatively small % of the Indian economy.

The global economy is less reliant on the US economy these days.

India’s economy is sufficiently strong to survive a drop in the growth of Aggregated Demand. In fact the Indian economy may benefit from more moderate growth, because inflationary pressures are of some concern.

• Strengths of Indian Economy
• Problems facing Indian Economy