An amazing revelation has been made recently in industry. The global economy is in the worst condition since the dark days of 2009. It is found, 6 out of the 17 countries that use the euro currency are in recession. Seems, the economic superstars including China, India and Brazil are not in the position to come to the rescue.  Besides India and China, other countries are also afraid of losing their businesses to European Economic uncertainties. And, IT being one of the front-runners in rapid advancement is getting affected badly. 

Economies around the world are simply tightly interconnected. This is the reason why Europe's slowdown is hurting other countries like India and China. For instance, slow demand in Europe is directly proportional to less work in Chinese factories, which ultimately leads to less demand of iron ore from Brazil. It clearly means that as one region weakens, others do, too.

As a serious consequence, IMF (International Monetary Fund) is expecting a grim outlook for the world economy and feels that it has entered a 'dangerous new phase'. As business activity has destabilized and confidence in market has fallen drastically, economy can slide into recession. IMF has reduced its forecast for world growth this year to 3.5 percent, the slowest since a 0.6 percent drop in 2009. 

China which is the world's second-largest economy recorded its economic growth fell to a three-year low value. It grew 7.6 per cent in the April-June quarter compared with the same quarter last year. This was the slowest revenue growth since early 2009.

For years, India has been seen as one the most capable economies of the world. Seems, the scenario is changing swiftly and even India is losing its position in world economy. S&P Ratings Services has recently cut India's outlook to negative from stable. Responsible factors given for the change are its slow progress on its fiscal situation and deteriorating economic indicators. Indian IT firms which are reviewed for the rating include Infosys Limited, Tata Consultancy Services and Wipro Limited. 

For the time being, few market watchers are foreseeing another global recession. To the reader’s surprise, Central banks in China, Britain, Brazil, South Korea and Europe have already cut interest rates in the past month to try to jolt growth.

However, despite economic downswing China and India are still growing at steady pace. India and China have always been at loggerheads over various issues. With an advanced infrastructure and the resources to make it the largest manufacturing base in the world, China seems to have an edge. But while China rules in manufacturing goods, India clearly leads in the services space. 

It is believed, economies like India and China should keep an eye on emerging economies and newer verticals to sustain their growth momentum. These countries have done exceptionally well in the past and are likely to do well in future also. However, they cannot rely on the past services to withstand the economy which is sliding into recession.