This is, of course, not to say that there are no problems facing us, there are. But with every problem there is also a positive element. Sure there will be a problem in the real estate and housing sector with high interest rates and falling or stagnant asset values. But there is also an opportunity for finally building the low-cost housing for the Indian lower-middle classes in urban India. The numbers are large, as per Indicus estimates about 17 million new housing units are required to house everyone in urban India in the next seven years. Of these about half would be in the one-room units; and almost six million units are required in the sub-500 sq ft range with a similar number for the 500 to 1000 sq ft area. The apartment costing Rs 30, 50, or 100 lakh may no longer be in as much demand, but there are millions of households that desire and can afford the benefits of a small home. The investment in such housing will be far more than the housing boom has seen in the last decade.

The IT services sector is also expected to take a big hit in the international markets. Of all the sectors, this is perhaps one sector that could do with some government action. The Indian government has long delayed putting in a strong IT backend to support its operations.

Stories of leakages in subsidies, delayed movement of security personnel, missing back-up action on bandh breaches, the long time taken to set up a business, poor rehabilitation and compensation of farmers, drying up of liquidity in financial markets, etc — all major economic occurrences have been caused or abetted by information failures within the government. These were not a result of poor intentions or poor ability.

... contd.