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US Recession and Indian Economy | Economics Blog

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.

 

1 comment so far ↓

#1 asi on 10.17.09 at 6:00 am

impact of US recession on indian economy

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