US, Europe crises to hit India Inc: Assocham

Written by fe Bureau | Updated: Oct 28 2011, 10:30am hrs
Indias growth story continues to ride on strong domestic demand but worrying signs are emerging due to Europes debt crisis and a faltering US recovery, according to the latest Assocham Eco Pulse study that analysed second quarter results of 87 companies across various sectors.

High interest rates have pushed up raw material costs. The demand for automotive components has declined and delays in government clearances continue to hold back fresh investments.

Though exports to Europe and the United States have fallen, overall exports continue to be on upswing.