My theory is out of the 2.8 M I L L I O N people unemployed there must be 30 to 40 % of them willing to set up and run there own business with a little guidance, so aren’t the government thinking outside of the box and trying to help the lesser fortunate at the minute.

My girlfriend being one. G R R R R R.

The counter balance 800 new jobs will be created in Merseyside at the Halewood plant which secured the deal to produce the new Range Rover. The Company is owned by Indian firm Tata. There is no news on which plant will be shut. Most people have seen that the move although bad counld be worse with both plants shutting down.

“This is a plan that recognises the impact the economic collapse has had on our business, and at the same time the opportunities that lie ahead for these two great brands,” said chief executive David Smith.

It’s important that businesses don’t then decide to take their “foot off the pedal”. We noticed that companies that decided to cut back on marketing during the resession would have a bad time the same is now correct with the recovery period. It’s important to keep on spending money and time on promotion of your product.

It could be the case that you come out of this period stronger and making more money then ever.

The main reason India in particular won’t survive is that they currently offer cheap labour, and that’s what’s fuelling their economic growth.

Cheap labour is a strong asset for any economy when it comes to dealing internationally, but the problem for India is that this is all it has to offer in the outsourcing sector. As the economy grows labour costs will increase which means that international companies will take their outsourcing operations elsewhere.

In the UK, there has been a strong backlash against foreign call centres. Largely because there can be a clear language barrier and it can feel as though there is no direct line through to the company behind the call centre operation.

The only reason that business is located within the Indian economy is to save money. There is no ‘quality’ benefits, in fact customers dislike dealing with offshore call centres. Once the cheap labour goes, the entire outsourcing infrastructure will follow suit.

It remains to be seen whether the Indian authorities will be able to manage labour costs, and indeed whether they can help differentiate their services any further that on a purely low-cost basis. If they don’t, I think the economy will find itself struggling for outside investment and anu further growth.