After markets, infrastructure sector faces the brunt of liquidity crisis
By: preeti somani on Friday, October 24, 2008, 05:53:50 PM
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Following the latest developments on the domestic economy circuit, things are not looking very bright for the Indian democracy. Because battle with the after-effects of liquidity crisis is proving to be a hard nut to crack.


Reportedly, after the stock and mutual fund market, now it is the turn of the infrastructure industry. Yes, you would be surprised to know that in the wake of liquidity crisis, infrastructure industry has suffered quite severely at the hands of global meltdown. The worst affected group has been the labour class which is the backbone of this industry. This pounding on the labour class has sent down most of the construction and infrastructure companies packing their bags. With no signs of an immediate relief on cards, the industry has already witnessed a loss worth thousands of crores. Observing the slump in the growth rate of the industry, a large number of labourers have already migrated to their native place while those who haven't are giving it a serious thought.


Considering the economic climate of the country, this is definitely not a pleasing sign for the economy, as thousands of people who depend heavily on this sector have been rendered homeless and jobless. What has been more depressing is the way the government is reacting to this situation. Because to the political class nothing seems to have happened. When politically-active personalities of the nation are queried on this subject, they avoid saying that this is a superficial issue and things are on the way to normalisation. Keeping the fingers crossed is the only thing that people can do at this juncture of time.


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