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is kerala staring at an economic crisis ?
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Following the global financial crisis, there seems to be a notable decrease in the number of foreign tourists in Kerala. (around 20% reduction in hotel bookings ?)The government of Kerala seems to be trying new marketing strategies to attract more domestic(indian) tourists to kerala.
On the other hand, some of the IT companies in Kerala seem to have big business dealings with companies in the USA (stuff like BPO's, software development/support for US banks, financial institutions, insurance companies, airlines etc.). Those companies which do not have a balanced clientele from all around the world, and whose main business was concentrated in US companies might easily see some slowdown due to the slowing down of the economy in the USA.
Anyway the government seems to have entrusted the centre for development studies(CDS) to study the averse effects of the financial crisis on the state of kerala.
A lot of the students who passed out the various engineering colleges of Kerala over the last few years (irrespective of their branches of study )were absorbed into the IT sector of Kerala (or the neighbouring states). Even some B.Tech students with back papers (arrears) are employed in the IT sector albeit on a lower pay scale.
If the IT sector in the state slows down, the state might face a lot of problems with unemployment, because the category of people being employed in the IT sector in Kerala might not easily find employment with salaries similar to their current paycheques. Also some of the people in the IT sector might have been given very huge loans for housing, automobiles by banks because of their higher salary. .

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tags: global financial crisis, kerala, IT sector, BPO






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