Economic downturn : The economic downturn / recession is now a reality. While there was talk of India being 'de-coupled' from the global economy, that does not seem to be the case as recent events have shown. Most indicators point to this trend: declining profits, layoffs, crashing stock markets. Vizag, to some extent, and as has been the case all these years, seems blissfully unaware of these happenings. Or is it? And are Vizagites in denial? True, being a city full of public sector employees flush with funds from the sixth pay commission, the impact may not be as great as in cities driven by free markets, but the ominous signs are visible: several companies in Vizag, especially those in the IT field, have laid off hundreds of employees quietly; the number of 'To Let' signs on commercial properties is going up by the day and most retailers are barely breaking even if not losing money; real estate, that darling of Vizag investors till recently, is now a hot potato that no one wants to hold (prices for commercial space in Dwarakanagar have almost halved).
There are two ways of looking at it: the beginning of a downturn or the end of the madness. Things had gone to dizzy heights that were not sustainable and not realistic. The rise in prices of real estate and commodities and the skills shortage were not based on genuine demand: Those who could barely speak English were working in call centres and plumbers and electricians accustomed to charging Rs 50 per call were demanding Rs 300!.
The bad news is that there is bound to be a lot more pain in the days to come. The good news is that when things do pick up, as they eventually will, there will be a lot more sanity and growth will be controlled.
Do you think Vizag's economy is sufficiently insulated to escape the fallout from the downturn in the national and global economy despite its speed and savage intensity?