In the past year, the Indian as well as the global economy has witnessed a very high degree of uncertainty and volatility.
While the year began on a reasonably optimistic note - particularly for the Indian economy - sentiment was completely reversed as the year drew to a close.
Just to 1 underscore this aspect, the D&B Business Optimism Index for Q4 2008 fell by over 28% as compared to the previous year, when it had actually risen by as much as 9% in Q4 2007.
At the end of 2007, when we had put down our expectations for the coming year, we had stated talent crunch and the availability of well-trained human resources would be the key theme of the coming year.
Of course, that expectation has been completely belied in the past 3 – 4 months, as news of retrenchment, job cuts and slowdown in hiring across various segments of the Indian economy streams in.
This sharp shift underscores the somewhat grey theme of the year gone by, as the global financial crisis turned into a global economic slowdown, impacting the fortunes of the Indian economy along its way.
This report has been prepared with the idea of providing a forecast of key macroeconomic variables, which will determine the course of the business environment over the next fiscal.
Since an understanding of the future is impossible without a careful study of the past, the report also summarizes the events of the year gone by.
This not only provides a roadmap for how we have reached where we are, but also provides significant clues for what needs to be done for us to get back on the high growth trajectory.