Agreed the opportunity cost is low now. But there's another angle to the continuing recession. With the stock market plunging all the time, the exchange rate keeps climbing. Not to mention educational interest loans. It was 12% when i started to apply in July, by end August it had become 13%!!! In India, the dollar went from Rs42 to Rs49. That's a Rs7 increase. Multiply this by the cost of your US education. Factor in your bank rate and the withdrawal of bank loans to top colleges. I'm wondering how long before Indian students stop applying?? How long before the cost becomes too prohibitive? How long before the the competitive Indian/IT/Male pool stops being as competitive as it is now??
Saturday, October 18, 2008
Effects of the Recession on India
Jon and Ray made interesting comments in my recession post. Both pointed out the number of jobs and the low opportunity cost.
Agreed the opportunity cost is low now. But there's another angle to the continuing recession. With the stock market plunging all the time, the exchange rate keeps climbing. Not to mention educational interest loans. It was 12% when i started to apply in July, by end August it had become 13%!!! In India, the dollar went from Rs42 to Rs49. That's a Rs7 increase. Multiply this by the cost of your US education. Factor in your bank rate and the withdrawal of bank loans to top colleges. I'm wondering how long before Indian students stop applying?? How long before the cost becomes too prohibitive? How long before the the competitive Indian/IT/Male pool stops being as competitive as it is now??
Question on B-School Form: Please indicate if you can pay the fees if accepted into our program
Agreed the opportunity cost is low now. But there's another angle to the continuing recession. With the stock market plunging all the time, the exchange rate keeps climbing. Not to mention educational interest loans. It was 12% when i started to apply in July, by end August it had become 13%!!! In India, the dollar went from Rs42 to Rs49. That's a Rs7 increase. Multiply this by the cost of your US education. Factor in your bank rate and the withdrawal of bank loans to top colleges. I'm wondering how long before Indian students stop applying?? How long before the cost becomes too prohibitive? How long before the the competitive Indian/IT/Male pool stops being as competitive as it is now??
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1 comment:
hmm good post, the only industry which i feel will not face recession in India or anywhere is medical industry, medicines are necessity, and i feel that this industry will never face any downtime... what you say?
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