India and Economic crisis

Economic crisis at present has been the largest after the great depression in 1929. It all started with the large and well established investment firms like Lehman Brothers and insurers like AIG were declared bankrupt. The whole process is complex but finally the result was that the whole economy was a let down esp in the United states. The government has taken certain measures by lending a few million dollars to the bankrupt companies to control the economy but in vain. As a result Unemployment was increased and luxury has decreased.

India by itself hasn't experienced any let down in the economy, but it is highly effected by the economic crisis in the United states. This shows us how much India is dependent on the foreign countries. It had a great economy going an year ago with a lot of foreign investment resulting in a massive increase in the prices of the shares. With the major investment companies declaring bankrupt, the foreign investment has stopped and their by the prices of the shares has gone down.The share value has gone down almost to one-third after the crisis. This shows us how much foreign-investment is present in India's economy.

No companies in India have declared bankrupt. The prices of commodities haven't rised, the real estate hasn't got effected. Its only due to the large and well
established investment banks and the commercial banks which declared bankrupt has cause this chaos. Now if India should get back to its economy, it should depend on the other countries to clear of all the crisis and get back to there best economy.