The UK is of course not the only country whose economy is hurting. India recorded GDP growth of ‘just’ 6.9% in the September quarter, its third conseuqtive quarter below 8%. Manufacturing grew by 2.7% and mining contracting by 2.9%.
On the other hand, Indian exporters (including, of course, those of offshore IT and BP services) are enjoying the effects of a particularly weak Rupee, which has been peaking at over 50 to the US dollar during the past couple of weeks. With, on average, 70-75% of offshore IT/BP services being delivered from India, and the work typically being invoiced in ‘onshore’ currencies, this does give a rather useful, if erratic, boost to the Indian P&L’s. As I say, it’s all a matter of perspective.