We have been hearing of job cuts by US majors for last few years. Rather we were happy to hear such news in USA, because we were the beneficiaries of the job cuts. One person fired in USA means one person employed somewhere in India, China or some other Asian countries. This equation has made us keep aside the sad aspect of job loss of Americans. However things have changed now.

For the last few years, the growth rates remain high which further drove the aspirations higher. The employed class here in India ensured that the 'upwardly mobile' life will be lived to its fullest. However as the global slowdown catches speed, Indian brain workers are also not spared from it along with the blue collared workers. Name the sector and there are news of layoffs. Real estate, brokerages, investment banks, retail, aviation, entertainment and logistics- all over the economy – this slow poison of retrenchment is active.

Our prime minister in today's meeting with the Indian corporates made it clear that they are not supposed to fire people. All thanks to the forthcoming elections and nothing but the popularist politics that made the economist in Manmohan Singh to sit on the back bench for some time now. It is the need of the hour to maintain the mood of public - especially the middle class - that is going to be the determining factor as the farmers and rural populations is unlikely to be 'tamed' despite the farm loan waiver.

The energy crisis and the subdued market had already taken the toll of thousands of farmers and the psyche is already against the Manmohan government. The urban middle class is the only ray of hope for the government as this segment of the society has seen some good days for the last few years, thanks to booming markets. However as we move near the elections, if this segment is also turning hostile due to inflation and job losses and top of it rising interest rates.

The times are tough for the existing government if the things do not improve over next three months. There is a possibility of announcement of elections by end of November or sometime early December, with a notice period of 60 days. This makes it all the more imperative for the government to resort to all possible ways and means to make it a happy effect around. As Obama walks in the chair of American president, it is highly unlikely event. We wish all the very best to Manmohan and company.