RBI’s firm and decisive monetary policy action to rein in inflation will have an adverse impact on corporate bottom lines and is likely to hurt short-term growth. However, it would lend greater stability and certainty to medium-term economic growth, which is imperative for sustained corporate performance. Going forward, the concern is this doesn't seem to be the end of monetary tightening and more rises are likely. All this follows an increase in the prices of crude oil and commodities and would impair investment demand in the economy. Given the level of current input costs, competition from Indian firms would be strained.
Prashant Ruia Group CEO Essar Group
