Can India bail out America and rest of the world from economic crisis

Can India bail out America and rest of the world from economic crisis


By JYOTI KOTHARI

Indian Economy: Fourth largest in the world


(This hub is published on

13 November 2008).

India can bail out America from its present economic crisis and financial crisis.

How can it be done?

I have already discussed Strength of Indian economy (fourth largest in the world in price parity parameter) in the previous part of the article.

Can India bail out America and rest of the world from present economic crisis? Part 1

It is in the best interest of the American citizens to go through the hub to know how to get rid of their economic crisis.

Followings are the potentials and opportunities in India that gives a wide angled view of the Indian economy. It describes Para by Para how India can bail out America and rest of the world from present economic crisis.

1. Two hundred fifty million Indian middle class along with many billionaires and millionaires creates a huge and potential market for everyone. The Americans and people of rest of the world can use this market selling their products and services and bailout them from present economic crisis.

2. Indian citizens save thirty five percent of their annual income and the country has the fifth highest foreign currency reserve in the world. Foreign currency reserve of India is more than the US and most of the European countries. This reserve provides Indian Government, corporations and citizens at large an opportunity to invest all over the world.

3. India has a well regulated and strong banking system. Most of them are well capitalized. Not a single bank or financial institute is failed so far. Indian government need not to come out with a bailout plan for their banks and financial institutes.

It is something unusual in this particular time of economic crisis and financial problem. Most of American and European banks and financial institutes are either collapsed or in financial crisis. Many Asian banks are also in problem. Indian banks provides a safe heaven of investment for the global investors small or big.

State Bank of India in US
Concerns of President Obama and India


4. Skilled and young workforce of India has the ability to change the destiny of the world. They are well trained and educated. They have shown their abilities in Silicon Valley and in many other sectors in the US.

5. India has world class educational institutes such as Indian Institute of Technology (IIT), Indian Institute of Management (IIM) etc. where costs are moderate in comparison to American, Australian or European institutes. Indian Medical colleges and IT institutes are also doing very good. It is advisable for American students to include India as one of their destinations, particularly when education loans look burdensome.

6. There are many world class hospitals and health care centers in India with state of art facilities. Indian medical professionals are world class. India is also home for Ayurveda, Naturopathy and Yoga. It also excels in alternate therapies e.g.Homoeopathy, Yunani, Acupressure and Su-zok. The most fascinating feature is that all these facilities are significantly cheaper. Is not it a good news for American citizens who have practically lost their health care facilities in their own country? Obama, the President elect, has already expressed his concern about health-care facilities to his citizens. It is worth for him to act with Indian Government in this sector.

Which feature of India fascinates you the most?

* Foreign currency reserve
* Strong banking system
* Large economy

See results without voting
Indian agriculture
Indian milk product
Some more points worth mention


Some points have been described above to show the capabilities of India in bailing out America and rest of the world from its present economic and financial crisis.

7. India is a leader in agricultural products such as Tea, sugar cane, spices, jute, aromatics and herbs etc. Indian agriculture sector consumes huge quantity of fertilizers, seeds, agro-tools and other equipments.India is also producing healthy food from organic farming.

There are many processing industries in India for agricultural products. However, it needs much more. There is a huge potential in processing industries in agricultural sector.

8. India produces more than two hundred million tons of food grains but it has inadequate warehousing facilities. Hence, Americans and entrepreneurs of rest of the world have ample opportunities to develop infrastructure for warehousing. Food processing industries may be another major sector to look at.

9. India produces highest quantity of milk in the world. Hence potential for processing units is enormous.

10. India has signed a nuclear treaty with America and France. It requires a supply amounting to $ 150 B for its energy needs. This can generate huge employment in the US and France. India and America can also join their hands in clean energy sector to fight global warming and climate change.

India has also started generatinggreen collar jobs along with America. Again, America can collaborate with India in the green collar job sector.

11. India has forty five percent market share of global business process outsourcing. Skilled and trained Indian manpower help American corporations to enhance their efficiency and cut cost. It in turn increases their global competitiveness. It is not in the interest of America to discourage outsourcing.

12. India is growing at the rate of seven to nine percent per annum. It is to be continued at least at the rate of six to seven percent even in the period of global recession.

13. However, India is lacking far behind the developed nations in physical infrastructure. This is the main drawback of the country. Core sectors are roads, sea-ports and airports; energy, warehousing, laboratories etc. Prime Minister Man Mohan Singh has recently invited $ 500 B foreign investment in this arena. India also needs advanced technologies from the US to develop its industries. Technology is also needed in clean energy field. American corporations may come forward with their expertise in these fields to handle the tasks and be benefited. It can generate enough employment for the common Americans.

14. Sixty percent of total Indian population has to be uplifted to global standards. This marathon task needs huge investments, technological support and continued action. This alone can bring America and rest of the world out of recession.

15. Indian entrepreneurs are opening their offices in cities like New York generating employment to the common Americans.

Above mentioned are just the glimpses and there are many other points worth mention. It is in the best interest of American Government and people to increase bi-lateral co-operation with India. Having this done India can bail out America and the entire globe from present economic crisis and financial problem.
Americans prefer Indian hospitals
Updation 27 July 2009


1. Ms. Clinton visited India few days back and urged India to play its role as economic mega power.

Visit forum posts for more info.

2. India has launched its nuclear submarine 'Arihant' on 26 July, 2009, on the occassion of 10th victory day of Kargil war. It is worth mention that only five other nations have nuclear submarine.