Home / Knowledge / News / Industry is under tremendous cost pressure, FICCI
Industry is under tremendous cost pressure, FICCI
Jun '08
A FICCI Survey projected inflation to remain above the 7% level till the end of December 2008 according to industry perception.

Against the background of rising prices, FICCI had conducted a survey on inflationary expectations amongst Indian industry.

The survey findings show that Indian industry has high inflationary expectations and the majority of the companies feel that inflation would continue to remain above the 7% mark till the end of the year 2008.

As inflation tops the 11% mark and the government knuckles down to the task of containing the runaway price rise, the FICCI Survey points to the imperative need to manage inflationary expectations that are running high.

The 'FICCI Survey on Inflationary Expectations' reveals that majority of the 317 companies surveyed feel that the current bout of inflation is largely due to factors that cannot be really influenced by the monetary policy measures.

Rising oil prices, rising commodity prices and rising food prices are a global phenomenon and these cannot be influenced through the monetary policy. It is therefore important that the authorities take a re-look at the anti-inflationary package.

Industry is under tremendous cost pressure on account of rise in the price of raw materials, rise in the price of oil and oil products, rise in power costs, rise in wages and salaries and rise in interest burden.

All these factors together have put a huge dent on the margins and on the operating performance of the companies forcing many of them to partially offset this pressure through an increase in prices.

Given the present situation on the inflation front, industry fears that interest rates would remain high and possibly rise even further in the near term.

In the context of slackening pace of manufacturing sector growth, majority of the industry members feel that interest rates should be brought down.

The inflationary pressure in the economy is showing no signs of weakness. From a low of 4.46% in January 2008, inflation based on WPI moved to a high of 7.41% in April 2008.

Latest numbers show that inflation touched 8.10% for the week ending May 17, 2004, 8.24% for the week ending May 24, 2008, 8.75% for the week ending May 31, 2008 and further jumped to 11.05% for the week ending June 7, 2008. The present high rate of inflation has had an impact on inflationary expectations as well.

Both the government and the RBI have taken several fiscal, administrative and monetary measures to rein in inflation. While the results of these measures would become evident in a few months time, the findings of the present FICCI survey show that there is a strong feeling amongst members of Indian industry that inflationary pressures would be maintained and possibly rise further in the near term.

Nearly 68% of the respondents feel that the current inflation rate would be either maintained or it would further increase over the next six months.

Must ReadView All

Textiles | On 20th Jul 2017

Provide safety net for cotton growers: Congress to Trump

A bipartisan Congressional coalition has called attention of...

Courtesy: ITMF

Textiles | On 20th Jul 2017

ITMF'17 themed on tech, trade, climate in disruptive times

The International Textile Manufacturers Federation (ITMF), an...

Textiles | On 20th Jul 2017

RIL’s Q1 FY18 petrochemicals revenue up 22.9% y-o-y

Reliance Industries Limited (RIL) has reported its financial...

Interviews View All

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Indian textile value chain

Adopt innovative techniques, go for automisation rather than being...

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Pranav Mishra

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category

Related Categories:

Planning to Take the Leap towards

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search