Notes on Indian equities, sectors and economy

Rising business costs

Posted by fairval on May 9, 2008

A recent Citi report makes coins this concept of cost of doing business and how it has risen very rapidly in India. It points out that for distribution heavy sectors like retail and banking, cost of new outlet has risen almost 30% p.a.

Clearly this has to bite at some point. So long as businesses can pass on inflation, profits can be insulated. While govt will focus on breaking inflation in basic foods, inflation in other items cannot be controlled till there is atleast some growth slowdown


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