Sunny side up: Slowdown throws up opportunities as well

CRISIS and opportunity are actually alter egos; one is not far from the other. So don't be surprised or cynical when we say some aspects of the current economic slowdown are opportunities waiting to be utilised, not threats. Repositioning, overcoming weaknesses and prepping to resume growth are the way to go, so that when the world gets back to spinning the right way, you're ahead of the curve. So, here are ten things that you can be cheerful about in 2009:
The Goods Come Cheap: India is likely to undergo a temporary period of deflation — a decline in general level of prices of goods and services, as opposed to a price rise — between March and June 2009. India's chief statistician Dr Pronab Sen recently said he anticipates inflation to slip into negative zone by March due to lower commodity prices coupled with high base. This means that your grocery and fuel bills will reduce, compared to last year. In fact, with the government planning to de-regulate retail fuel prices, petrol prices may drop further despite already going down by as much as Rs 10 per litre from its peak.
Blue Chips At Historic Lows: Then there is the BSE Sensex, that has nose-dived along with the NSE Nifty, signalling a great opportunity to pick up frontline stocks at dirt-cheap valuations. Most stocks right now are quoting either near their 52-week lows or historic lows. For instance, heavyweight stocks such as Tata Motors, ICICI Bank and DLF are all trading near their 52-week lows. In fact, analysts expect India's equity market to bottom out by March this year.
It's Raining Discounts: Next is discount-mania. Anxious retailers are dying to clear inventories and that means cheaper cars, branded clothes, appliances and more. Most leading high street brands such as FCUK, Mango, Adidas, Puma, Reebok are running discounts of up to 50% and even luxury carmakers like BMW are giving sweeteners. My Home Affordable: The real estate sector had been artificially bloated for the last few years. With the slowdown-induced correction, property rates have dropped by as much as 10-15%, rentals have eased, and home loan rates have also softened. In fact, ICICI Bank MD KV Kamath expects the home loan rates to drop below 5% by July. Yes, it is now possible to dream about home-sweet-home again.
Your Money Is Safe, Growing (And How!!): The Indian financial system has remained relatively insulated from the mayhem in the West. This has meant that banks are safe havens for savings and investments. In a bid to attract investors exiting the capital markets, banks and companies are offering high rates of interest on fixed deposits can fetch returns of up to 10.5%. Thrills Come Cheap
Best Education, Jobs: Indian higher education is held in high regard around the world. It also remains one of the cheapest. Despite reports of pink slips in sectors such as IT/ITeS and real estate, others like pharmaceuticals and FMCG are still bullish on hiring. State Bank of India will be adding 25,000 people to the workforce at both the clerical and supervisory staff level as well as recruiting about 4,200 employees for its six associate banks in 2009. Says Kris Laxmikant, CEO, Headhunters India; "The Indian job market is still much better than that in many other countries. There are jobs galore in sectors like education, healthcare, telecom, FMCG and financial services. These opportunities are more in the non-metro and rural India and are attracting a lot of talent."
    The Thrills Come Cheap: Air fares, hotel rates and imported liquor have also come down from stratospheric levels. While air fares have seen a cut of over 60% on some routes, luxury hotel rates have also come down by more than 25%. This means that you can holiday at the best of destinations at fares that were unbelievable until sometime back…and yes, enjoy a good bottle of wine too.
    The Fundamentals Are In Place:
India has always been one of the more self-reliant economies with two-thirds of its produce consumed domestically. This has saved us some of the harsher repercussions of the slowdown. Even the most conservative estimates peg India's growth at 7%, a good scenario considering the situation in the West where countries such as Germany and UK have declared recession.
    Land Of The Enterprising:The recent ET-Synovate Entrepreneurship Survey proves that India is a land of enterprise. It has shown that as many as 69% of the country's salaried professionals and a third (32%) of the engineering and management students want to become entrepreneurs. Says brand guru Jagdeep Kapoor, CMD Samsika Marketing Consultants, "During these times, one needs to build brands, start a new venture, and use the journey of adventure to grow because consumption has not come down. Pricing may change. There is a level playing field right now with everybody being brought down to the ground. The opportunity cannot get bigger than this."
    So, the economic slowdown can be a pep-up. It depends on how you see it. Says Santosh Desai, CEO, Future Brands; "In India, not all, but a lot of the fear of slowdown is in the mind. The country's economic profile is such that the slowdown impacts a small section of the populace. We need to be positive and spread the good word around."
    amit.sharma15@timesgroup.com