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'Rising inflation, interest rates major concerns'
22 April, 2011
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
"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 Mindmine Summit 2011 here.
According to Munjal, the Hero Group is currently unaffected
from these factors, but the same cannot be said about smaller
"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," he said.
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
Recently, the India Meteorological Department (IMD) forecast a
normal monsoon this year. Economists also predict that a
normal to good monsoon will boost the government's efforts to
contain food and overall inflation, which is still above the
The country's agriculture sector, which is 60 percent
dependent on rains, will also be able to grow at the above-3
percent level, economists said.
The summit also saw the sixth BML Munjal Awards for Excellence
in Learning and Development being conferred on Punjab National
Bank in the public sector category and Tata Power in the
private sector category.
A special commendation award was also conferred on Power Grid
Corporation of India Ltd.
"They (awards) are given to companies that have consistently
used training, learning and development as a source of
competitive advantage and as a strategy for their business,"
Hero Mindmine Institute said in a statement.