What are effects of unemployment in India?

Recession in the West, specially the United States, is a very bad news for our country. US is our biggest trading partner in goods and services.The Recession in US will adversely impact the outsourcing industry which now employs nearly 2 million educated persons and which has provided a Philip to urbanisation of India.The outsourcing revenues will take a hit and hence the balance of payments of goods and services.

There will be steep decline in the inward remittances from the Non resident Indians. This has been a critical source of funding the deficit by the government.