Situation in India

Positives
Jobs (More recruitments than layoffs)
Consumption remains robust (retail sales up around 20%)
Infy says no change in dollar guidance. Depreciating rupee positive for IT.
Subsidy burden reduced substantially with Crude price correction thus budget balances turns favourable
Spend on Entertainment remains the same (DTH subscription and 80-85% bookings at the box-office)
Inflation down to near 9%. Bet on rate cut before end-2008.
Commodity prices cool down

Negatives:
Real Estate in trouble (due to liquidity crunch)
Auto sales down for the same reason
Airlines continues to bleed
Infrastructure spending slowdown
Life Insurance premium growth dropped to single digit
Exports down 15% in Oct, Excise collection contract by 8.7%
Expansion plans of India Inc hit due to funding problems

With interest rates easing inevitable in the near future, many of the negatives can be rubbed off to a certain extent from FY10 onwards

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