The US economic recession is weighing heavily on the tech sector around the world. According to recent reports, 1 lakh 30 thousand employees have lost their jobs across the world so far this year. Big companies like Cisco, Intel, Microsoft have laid off their employees. Worryingly, this streak of layoffs does not seem to stop in the coming days. We can say this because fears of a recession in America are starting to rise, due to which clouds of crisis are hanging over the global economy. It can affect many sectors in India as well, apart from IT. Indeed, some major economic indicators in the US are pointing to a recession. Jobless claims also rose significantly from a low in January, and the jobless rate rose to a three-year high of 4.3 percent in July. Apart from this, the manufacturing PMI fell to the lowest level in 9 months.

There are mixed signals in America:
Meanwhile, the US economy has also shown signs of recovery from the recession, chief among which is a rise in GDP growth estimates for the July-September quarter from 2.6 percent to 2.9 percent, wage increases outpacing the rate of inflation and rising home prices, meaning the overall US economy remains mixed. There are signs that it is difficult to say whether the economic weakness there will turn into a recession. Meanwhile, fears of a possible recession saw extreme volatility in American stock markets. Market expectations have risen after the US Federal Reserve signaled an interest rate cut in September. But if the situation does not improve and the American economy slips into a recession, India will also be affected in which the fall in demand in the US may reduce Indian exports. IT, pharma and textile sectors are highly dependent on the American market. Apart from this, the economic slowdown will hamper the global supply chain, making the situation more challenging for Indian exporters. Along with this, a slowdown in the US will reduce the confidence of investors across the globe which may reduce FDI in India. However, in such a scenario, crude oil prices may fall which will be beneficial for India. In such a situation, domestic demand, large exports and strong financial position can certainly prevent India from going into recession.