Balaji Viswanathan

What Does India's Future Hold for the World Economy?

Hi,
I neither claim nor believe that India will pull the world out of this recession. I claim that a combination of factors coming out of India and a few ohter regions will cause significant pressures in a lot of markets. Wat I saw on the ground is a real change that didn't exist even 4 years ago. This change in the ground level takes years to accumulate up and show in the macro statistics. And that would rise the possibility of a commodity crunch that we saw last year. Maybe oil will not go up to $150, but the commodity prices will be much more expensive relative to the wages. So, if the average wages in USD drops from $15 to $10 and oil price stays the same, it is equivalent to having oil get 50% more expensive.


On Mar 06 11:50 AM User 224899 wrote:

> Although India has the potential to influence world markets, it appears
> to have let down all the analysts who predicted a big influence from
> the Indian component of "Chindia". There has been an impact on the
> fertilizer market, but nobody is betting any real money on India
> pulling the world out of a global recession.
>
> One has to wonder if a huge nation with 100's of millions of stunningly
> poor people and dozens of nation-fragmenting language barriers can
> have any sort of concerted, organized agenda that projects in any
> meaningful or consistent fashion into the global market.