India Inc's Pressure Points

India Inc's Pressure Points
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  • Raw material prices have risen steeply; in some cases, the increase has been over 30 per cent in the last couple of quarters.
  • Lending rates for corporates may go northwards; the interest rates on personal, retail and home loans are up by a few hundred basis points.
  • Several sectors are seeing a capacity crunch; fresh investments to expand existing capacities will yield results in the next 12-18 months.
  • Transportation, wages and other marketing-related costs are also going up; one has yet to see the real impact of the fringe benefit tax.
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