Fears of a possible economic recession in the United States are increasing. Due to this, crisis clouds have begun to loom over the global economy. An examination of various economic indicators and market factors shows that the United States may be on the verge of recession. Many important economic indicators in the United States have begun to show signs of weakness. Jobless claims have increased significantly from the low level in January. In addition, the ISM manufacturing PMI fell to a nine-month low.
Saham Rule has also indicated the beginning of economic recession in the US. Many other indicators also say the same. In such a situation, if there is an economic recession in the US, which sectors in India will be most affected by it? Let us know which job sectors will be most affected…
There will be an employment crisis
The US economic slowdown over the past year and a half has taken a heavy toll on the technology sector across the world. As per reports, 1 lakh 30 thousand people have lost their jobs across the world this year. Major companies like Cisco, Intel and Microsoft have issued layoff notices to their employees. It is worrying that this spate of layoffs does not seem to stop in the coming days.
Not only IT, these sectors can also be affected
Due to the recession in the US, jobs in India may also be lost in many sectors other than IT. If the situation in the US does not improve and the US economy goes into recession, then India will also be affected and the demand for Indian exports may decline due to the decline in demand in the US. The IT, pharmaceutical and textile sectors are highly dependent on the US market. Apart from this, the economic downturn causes disruptions in the global supply chain, which may make the situation more difficult for Indian exporters.
In addition to this, the recession in the US will reduce investor confidence across the world, which may lead to a reduction in FDI in India. However, in such a situation, there may be a fall in crude oil prices, which will be beneficial for India. In such a situation, its domestic demand, large export basket and strong financial position may definitely prevent India from entering into a recession. Moreover, currency fluctuations, particularly a possible fall in the value of the US dollar, could adversely affect the Indian currency. If this happens, imports may become more expensive and businesses that rely on goods from abroad will also be affected.
What will be the impact on the IT sector?
The Indian IT sector is particularly sensitive to the US recession. Facing economic pressures, US companies may reduce IT spending, so revenues for Indian IT companies are likely to decline. This could lead to job losses and project cuts, which could have a significant impact on the growth of this sector.
