| While the direct link between the US crisis and developing countries such as India may be limited, due to the low export share in GDP, the real impact is likely to be through the stock market. Indeed, funds raised overseas by developing economy corporates has been falling quite sharply for several months now "" a sign of how financial market developments affect the real economy. |
 The near-collapse of the IPO market in India over the past week or two is important for precisely this reason "" since India's growth has largely been driven by the steady and sharp growth in corporate investment, anything that impacts India Inc's ability to raise funds to finance this is certain to hit growth. If, as is expected, India Inc's profit growth is also affected, this will worsen matters since the availability of funds from internal sources will also reduce.
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