America is facing a deep recession, will these sectors be the first sectors in India to be hit by the crisis?

The economic slowdown in America has taken a heavy toll on the tech sector across the world. According to recent reports, this year 1 lakh 30 thousand employees have lost their jobs across the world. Big names like Cisco, Intel, Microsoft have handed out pink slips to employees. The worrying thing is that this series of layoffs does not seem to stop in the coming days.

The reason for saying this is that the fears of recession in America are increasing, due to which the global economy is in crisis. Apart from IT, many sectors in India can also be affected by this. Actually, signs of weakness are visible in many major economic indicators in America. Unemployment claims have increased significantly from the low level of January and the unemployment rate has increased to a 3-year high of 4.3 percent in July. Apart from this, the manufacturing PMI has fallen to a 9-month low.

Mixed signals in the US
Meanwhile, the US economy has also shown signs of recovery from recession, the main ones being the increase in GDP growth estimates from 2.6 percent to 2.9 percent for the July-September quarter, salary hike being higher than the inflation rate and increase in house prices. That is, overall, the US economy is giving mixed signals, due to which it is difficult to say whether the economic slowdown there will turn into recession or not. Meanwhile, the US stock markets witnessed a lot of volatility due to the fear of a possible recession. Market expectations have increased since the US Federal Reserve indicated a cut in interest rates in September.

Many sectors of India will be affected!
But if the situation does not improve and the US economy goes into recession, then India will also be affected, in which the demand for Indian exports may decrease due to the decrease in demand in America. The IT, pharma and textile sectors are highly dependent on the US market. Apart from this, the global supply chain gets disrupted in the economic recession, which can make the situation more challenging for Indian exporters.

Along with this, the recession in America will reduce the confidence of investors worldwide, which may lead to a decrease in FDI in India. However, in such a situation, the prices of crude oil may fall, which will be beneficial for India. In such a situation, its domestic demand, large export basket and strong financial position can prevent India from going into recession.