India is in a tough spot..wage inflation is much higher than in China, infrastructure is crumbling, Real Estate is extremely overvalued and employee attrition is at an all time high making doing business very difficult.

As for the credit crunch in the US, I don’t think it would affect the Indian credit situation too much. Lending standards there are higher and very closely tied to one’s employment etc. so it’s reasonably sound compared to what is happening here in the US.