US Economic Recession and Lessons for India

This paper analyses the US economy from the globalization perspective and the lessons it offers for Indian economy. U.S. is one of the world's wealthiest nations, with abundant natural resources, a well-developed infrastructure, and high productivity. Yet, it sparked off global recession due to sub-prime crisis in 2008. Though sub-prime crisis has been often considered to be the reason for global recession, the fact is that the seeds of recession were sowed in early 2000s.  Unfortunately, the Indian economy is also radiating the same kind of warning signals. India’s current account deficit is increasing; imports are escalating, intensifying inflation, and depreciating currency; these parameters indicate the inherent weakness in the Indian economy. Therefore, the question is how India should deal with the impending economic crisis. Are there any do’s and don’ts for Indian economy? More so, are there any measures that can put the Indian economy on the fast track? This paper is not just an attempt to answer such questions but has tried to look into the sector-specific weaknesses of India.