Rising inflation, interest rates major issues for economy: Hero group
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Rising inflation, input costs, oil prices and steep interest rates are the major issues that are threatening the growth momentum of the Indian economy, a top Hero Group official said.
"The high growth rate that the government has set may be impacted due to these factors," Sunil Kant Munjal, chairman of Hero Corporate Service Limited, told reporters on the sidelines of Hero Mindmine Summit 2011 here. According to Munjal, the Hero Group is currently unaffected from these factors, but smaller businesses in the economy may be affected.
"Since smaller businesses do not have a very high credit rating, they would be affected by high interest rates and this will have an impact on the long-term investments in the economy." Replying to a question on the positive impact on the industry of a good monsoon prediction, Munjal said: "Well, a good monsoon is of course good for the agriculture and if agriculture grows by four percent, then it will definitely have a good impact on the services and manufacturing sectors as well."
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