Obamination,

Well, Obama's administration has decided to enforce "tax laws" on foreign income of the companies outsourcing from U.S. This move definitely aims at realizing Obama's Bangalore to Buffalo view, he expressed few days ago. In short, its a strategic move to shift the current Outsourcing to various countries including India, towards the American pockets. The implementation of this policy suggests that the cost of firms outsourcing (majorly to India) would increase by 50%.
Till now, the tax-policy of the U.S. Government was such that no tax was being levied no the incomes of the firms outsourcing to other nations in the IT sector, but now taxes will be levied. Here, I would like to say that U.S. accounts for India's 60-65% Exports of IT sector. This tax scheme would increase the cost of U.S. companies, thereby discouraging them to outsource, but on the other hand, would give the IndiaN IT giants like Wipro, Infosys, etc., a price edge over its Global competitors like Microsoft, I.B.M., etc.
This move though encourages the U.S. companies to remain within the boundaries of nation, still, if our sector makes necessary cost-adjustments, it would surely continue its successful growth. Still, the tax-policy hasn't been applied and the talks are going on. Lets hope it doesn't happen and even if it happens, it shouldn't damage our IT sector.
Do express your views.

To Anonymous,

Hello Anonymous. I'm really sorry for my delay in continuing our discussion on current Recessionary steps being taken by Government. Your point is quite correct in terms of liquidity infusion by Government, where adding liquid flow would increase the borrowing of the banks and stabilize our economy.
But as its said every coin has two sides, on some further analysis I found that this scheme of R.B.I. is affecting our exports, not at a high scale, but is definitely affecting at a low margin. Still, this is possibly the best strategic move available. This would have a strong impact on the interest-sensitive sectors of Economy such as Banking, Insurance, etc.
Thus, in depth analysis of this aspect says that R.B.I. is doing all it can to improvise the situation and results are coming. The repo rate was recently reduced to 6.5% and C.R.R. to 5%. The economy still being in Inflation I thus feel that rate cuts are quite a "pre-mature" step, rather the better way is to keep the interest rates steady and manage liquidity in the system and be prepared for emergency liquidity infusion measures. The recent C.R.R. cut down was aimed at this step.
This step would help current Banking conditions to come up from a deep negative liquidity to a marginally negative liquidity! Lets hope for the best. I've added many other posts, Do be a part of it too.
Do express your views on this.

Brain Return to India,

We all have been hearing the very popular phrase 'Brain Drain In India'. Its exact meaning states that the strong Brain Resources of India, are leaving it and are going abroad for allocating better opportunities of success, career and security. But, the downturn of the Global Economy has led to a change in the Fashion. Today, a large number of Indian students, who were settled abroad are returning back to hometown so as to get 'better' opportunities of job.
In countries like U.S., Canada, etc. a large number of students and even Indian residents there, live almost on EMIs in its entirety! This clearly suggests a come-back of the long lost resources of India. Many eminent experts have suggested that its a better deal to stay in India as India is comparatively less hindered by Recession.
Now, this too has a reason. India and China are the countries having a large share of Retail Market all over the world, India being lesser as compared to China. Still, India's dependence over the American sources is quite less and rather exports are more to foreign nations. Thus, for coming many years, it seems that India has a better plot of career opportunities as compared to the developed giants.
Do share your views.