*Unlike Europe and Japan, India does not depend much on exports. The contribution of exports to the GDP is less than 15%. So, howmuchever sectors like IT and Textiles are hit on the export front, they can at best slow down the Indian economy; they can not reverse the growth into a negative figure.
*The mess in the western economies owes itself to the gross mismanagement of awe-inspiring financial institutions. Simply put, the highly-paid bankers did not do the work they were hired for and were busy rewarding themselves with fat bonus cheques which they did not deserve one bit. While they were having a party at the expense of the genuine depositors and honest customers, another group too partied along. That group was the borrowers without the slightest eligibility to borrow in the first place. By the time the parties got over and the not-so-gentlemen woke up with a hang-over, the down slide of the financial institutions popularly called ' sub-prime crisis' had already begun in an irrevocable way. The group of ineligible borrowers easily washed their hands off the mortgaged properties and went back to partying. They had nothing to lose except the mortgaged properties; it was not their loss since this group had never repaid the capital borrowed or the interests accumulated. They dumped the properties on the banks and walked free, perhaps with a song on their lips. But the group of overpaid fatty bankers could not go back to partying since the dumped properties snowballed into a big slump in the real estate market. They were left to hold properties which fetched only a fraction of their original value. One thing led to another and since there is a series of banks and other financial institutions involved in holding bits and pieces of these securities irrespective of who lent money to the worthless borrowers to start with, the entire system started collapsing. The fall of the financial system started affecting the real economy and a full-blown recession resulted. If you want to know what happened to the fat bankers mentioned above, they are still fat because their bonuses are still fat. What a rotten system !