Issues to look for in 2009... :-)

Now 2008 is about to become a history... Time to chalk out some plans for 2009... I hope tht 2009 brings a smile on every face,like every yr 2008 has been critical, the economic fall and Terrorism have been too great problems..

Here is the list of few big issues that are to be looked... if overlooked, 2009 will be like 2008...

Demand Slowdown: 

This is the first critical problem and it is hitting all sectors of the economy. The slowing demand has filtered down to the retail space with shops finding fewer buyers even in the normally robust festive season from October to December.

Job Losses:

The aviation industry tried to bite the bullet when Jet Airways chief Naresh Goyal issued pink slips to nearly 1,000 employees and said similar sack orders were in the offing for 800 more. But he had to quickly back down and reverse the decision.

Public Issues:

Number three on the list is how the corporate sector can raise money from the public when stock markets are not particularly buoyant.

In January, the sensitive index (Sensex) of the Bombay stock Exchange (BSE) was at an all-time high, but now rules at 50 percent lower.

Indications, nevertheless, are that the market has now bottomed out with the Sensex having finally moved to the vicinity 10,000-point mark.

But most companies that had planned public issues for 2009 are going to hold their fire till the situation comes back to a much more even keel.

Consolidation:

• India Inc will have to face is the prospect of a shakeout in key industries. 
• The aviation sector, for example. is already in the look of buyouts and mergers.
  
• The unlikely alliance between Jet Airways and Kingfisher Airlines to avoid competition on flight schedules is unprecedented in India and based on falling demand. 

Inflation:

• Though the annual rate of inflation based on wholesale prices has come down sharply from over 12 percent a few months ago to a little over 6.5 percent now. 
• But the rise to double-digit inflation during 2008 had pushed up prices of raw materials and components sharply.
  
• Industry will be watching the price index closely to see its impact on production costs. 
• The Reserve Bank of India (RBI) will also have to continue monitoring the price index to ensure that it declines to the targeted level of 4 percent by the end of the current fiscal.
  

Energy Security:

• The cost of energy is a problem the corporate sector will have to face in the ensuing year.
• Global oil prices may have fallen now, but this is not expected to be a long-term trend.
  
• Prices are expected to rise as soon as demand picks up in the emerging economies like China and India.
  

Services:

• Another key issue would be the fate of the information technology and outsourcing sectors. 
• The IT industry is linked to demand for services in the global economy. 
• With this demand having diminished, the ever-rising graph of this sunrise industry may now slow down. 
  

Credit:

• Finding cash to run enterprises will be another crucial issue in 2009.
  
• India Inc has been crying hoarse that liquidity is not the only problem when it comes to accessing funds from banks. They also want interest rates to be cut.
  

Entrepreneurship:

• The prospect of declining entrepreneurship is also looming large
• because two sources of funding are drying up - venture capital and private equity.
  

Tourism:

• There would be the need to prop up the tourism industry as it has its implications on a host of related sectors - from hospitality to aviation.
•  The tourism industry was getting a major boost with the "Incredible India" campaign but there now appears to be a question mark following the Mumbai terror attacks.
  

Well all these issues may look like a common issue, they have to be taken care of, despite many successes, the year 2008 was pathetic for corporate world, to make it flashy in 2009, the year has to be made extra strong with coverage of above said issues

Warmth

Ankit