Indian industry is beginning to push the panic buttons with the impact of the global financial meltdown sinking in deeper every day. Indus try leaders at a Ficci national council meeting on Thursday admitted to ToI that the impact threatens to be both severe and long-term and would soon be visible through large and widespread corporate defaults on debt.
The grim prospect of corporate defaults on debt comes in an environment of credit scarcity for businesses in the midst of a major investment cycle. It has propelled Ficci to seek an agreement with other industry chambers, including CII and Assocham to jointly represent a cohesive agenda for managing this challenging economic scenario to not just the FM, but also PM, Manmohan Singh. "The problem is not just that of liquidity because of high interest rates. Banks are also risk averse which is impacting sustained credit flows to the main street", Ficci president, Rajeev Chandrashekar said. DLF chairman, K P Singh said that contrary to the government's reassurance that India is insulated, the impact could be far more severe than policy makers can imagine". K N Nemani, former Ernst & Young chairman highlighted the need to engage at the PM's level along with multiple ministries rather than directing industry efforts only at the finance ministry. A Citibank representative said consumer finance is shrinking sharply due to lack of effective recovery mechanisms. The private sector alleges that they have not been beneficiaries of the Rs 1,30,000 crore liquidity injection by the RBI as public sector companies operating in the oil and fertilizer space have mopped up the benefit. http://timesofindia.indiatimes.com/Business/India_Inc_sees_widespread_defaults/articleshow/3634690.cms --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Kences1" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/kences1?hl=en -~----------~----~----~----~------~----~------~--~---
