Nehru's Anti Recession Vaccine Has Immuned Indiaagainst Global Recession

The US economy accounts for ¼ of the world's GDP. The dream development of USA was busted when the world major financial giants like Lehman Brothers, Bear Sterns, AIG, Merill Lynch etc. saw the unprecedented collapse of financial giants. The large Banks in US according to economists and financial experts are like dead man walking A. sober assessment of the growing mountain of losses from bad debts, measured in today's market place would over whelm the value of the banks…and they are insolvent (Stere lohr 2009). The LPG reforms were introduced opening the doors on Indian economy. The economic polices pursued by India during the past 40 years prior to July ,1991, often dubbed as “license –control raj” was described as “mistaken polices” by Dr. Man Mohan Singh who was the finance minister in the PV Narismha Rao government and instrumental in the introduction of reforms. Some individuals even went to the extent of hailing it as our second independence had arrived. They were happy as they thought LPG reforms would free India from a rapacious and domineering state. These individuals were under the intoxication of opium of globalization. They had forgotten the economic history. But history repeats itself. India by the end of 2008 saw herself in front of the world recession. All that state would do was either wrong nor all that market would was right. The LPG not only gives you goodies but also the economic tsunami which even the developed world is unable to confront successfully.Nehru was right when he once said 'most of us seldom take the trouble to think. It is a troublesome and fatiguing process and often leads to uncomfortable conclusions. But crises and deadlocks when they occur have at least this advantage that they force us to think' (The Unity of India: Collected Writings, 1937-1940 (1942), p. 94) The major impact of recession on India will be on IT& BPO, textiles and garments, automobiles, gems and jewelry, transportation, construction and mining, Hotel, Tourism, handicrafts and leather segments. So Tomorrow depends on how the developed world reacts to recession, will it hide behind protection or go ahead with globalization