US Markets stumbles down and its impact on India

For the past one year United States Of America faces a huge economical crisis.The Wall street is sliding slowly and moving towards a very big crash. Now it has reached to its peak.The two big giants in bank sectors belonging to United States have crashed down and announced its downfall.The Lehman Brothers and the Merrill Lynch both came under big crash.Now it is being said that AIG the biggest Insurance group of US also going to announce its downfall.So there is a complete pressure on US as well as other the developing countries around the globe.The main reason behind this downfall is the unfocused economic policies made by the Bush Administration.However the other reasons are due to the hesitation shown by the  investors to invest on US markets and non-repayment of loans.The Economical experts say that these crisis will be solved only after the US Presidential elections are over which is going to be held on November. So what this crisis could affect the developing countries like India.The impact on India because of this downfall in US is, a huge decline in the progress of IT firms in India.Because of insufficient funds the US concerns doesnt want to make any investment in updating their software, which is the only resource for the Indian IT firms.This might lead to very big loss in IT firms.Moreover  the downfall of these two giant banking sectors, the projects being done for them will stopped.Though the revenues made to the IT companies by these banks were modest , there will not be any more deals between them and the Indian IT firms.This will impact majorly on IT giants like Infosys,TCS,Wipro and Satyam.Because of this the real estate business will also be affected creating a hurdle for the development of Indian Economy .There has been talks between Lehman Brothers and Barclays  to solve the Lehman issue and the deal may finish off in a pretty good manner.Because of this downfall in US Markets the whole world is facing the economic crisis.This kind of major affect in US economy has happened only once at 1930 and after 78 years it is a going to play another innings.This problem could be solved only when the US economy policies are reconsidered and only if effective measures are taken.However India believes that there wont be a great effect on Indian Economy because of this US turmoil.”How diplomatic India is “..Hope everything comes in better way soon.

Wish US a speedy recovery.

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