India Inc's inflation worries
At risk, is the tenuous recovery that they were starting to see and bank on.
The dry spell has created enough worries for the government and the farming community and India Inc is equally concerned, as delayed monsoons mean a slowdown in rural growth—a segment on which the industry was heavily depending to boost their profits after the global downturn.
Rajan Mittal, vice president of FICCI, said, "I think the agriculture concerns are looming on us. Services and manufacturing sectors need to grow. The issue is larger than just about GDP. It’s about rural growth, which was taking place. I think we need to delink these two issues rather than taking a holistic view of the GDP."
Industry chamber FICCI knocked the Prime Minister's door hoping for some remedy. India Inc is concerned over credit availability to the private sector due to the high government-borrowing plan, which might push up interest rates and its subsequent impact on inflation.
Amit Mitra, secretary general of FICCI, said, “The government has assured of sufficient food stocks. It will try to contain rising food prices, but aggregate inflation should not be a worry. Our president has taken up the issue of agriculture growth and food inflation with the Prime Minister".
As if the global downturn was not enough, even before India Inc was able to recover, the rain god decided to play spoilsport, making things worse for their already dropping bottom-line.
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