Companies are likely to shelve new projects which have not been closed financially as expensive bank credit will raise the cost of doing business. Sectors such as automobile and real estate, which depend heavily on consumer finance, fear demand will get choked in the days to come. And the price spiral in commodities will cut profit margins in a sluggish market.
A quick survey of CEOs carried out by Business Standard a day after the Reserve Bank of India raised two key rates by 50 basis points each to contain monetary expansion confirmed the worst fears of industry
