Out Of Hibernation

Air is once again thick with talks of an economic recession. Last time we in India saw a recession was also the first time – year 2001. Its an old economic adage that developing countries do not have recession and yet we had it. Pangs of globalization! In fact, the sectors effected by recession were directly linked to the world economy and hence the impact.

Sub prime crisis, as they call it, has been deepening in the US. Even before that, throughout the 2006, skeptics and people like Soros kept on talking of an impending recession by the beginning of 2008. Housing bubble in US was sited as one reason, bad (???) monetary policies followed by the fed was another reason.

Since Marx gave an analysis of economic cycles, not much additions has been made to basic theory. However, there is much more data available and people have made all kinds of empirical models to predict and manage the cycles.


The moot questions here are:

Is the US heading into a recession?
What is going to be the impact on the rest of the world, especially India?
As the experts differ on all the matters, they differ here also, and I am not going to hazard a guess.


So let me come to practical question.

I am seeing that exchange rate fluctuation is being used as an alibi by many software companies to defend their flattish growth in revenue and the decline in hiring and rise in firing.

I have heard lots of rumors in the past where company X or Y laid off employees.


Please spread the word and post comments here to update me so that we all know what is going on.


To start with, I have heard that a Pune based big company has terminated services of hundreds of employees. The numbers vary from 700-2000 and there is no official corroboration of this news. Official do admit that the services of some contract employees have been terminated.