If you go by what our Finance Minister says India will grow at 9 per cent courtesy of his policies best defined as maintenance of macro-economic stability in general and price stability in particular.

Though the global factors may affect India in the short term, especially the exports sector, i don’t think it will slow down India’s progress in the long term as most of the opportunity lies in India itself. But, then again, as India is getting globalized, it is not insulated anymore it will have to take a few setbacks in it’s stride towards being a developed nation.

The global credit crisis will definitely hit India. India being a major exporter of services will face a downslide in demand as the foreign companies face stringent borrowing norms. Also a depreciating US dollar will adversely affect Indian trade. With the RBI reluctant to reduce interest rates, no help is likely to come from the monetary policy makers.

@ Arpita, India banks don’t have too much exposure to the foreign debt market except for the biggies like ICICI and SBI. Moreover, yesterday’s economic times carried a story on why the Indian IT industry might be recession proof. The Economic times say’s that the IT industry in India provides very critical support services that cannot be avoided even in times of recession.

The article also adds that the Indian IT industry might even recruit more employees as more firms in the US will downsize and embrace more IT to integrate all processes vertically. And about the exports, i agree they will take a hit but that was always inevitable as sooner or later, India’s prosperity will bring the U.S dollar down