From Merc to Unilever, India Inc takes advantage of demand to raise prices

Auto to steelmakers passing on higher input costs to consumers

From Mercedes-Benz AG to Unilever, companies in India are finding power to pass on higher costs to consumers, a sign that demand in the world’s fastest-growing major economy is well-entrenched.

After the twin shocks of a cash ban in 2016 and the chaotic introduction of a consumption tax last year, India’s economic recovery is gaining momentum. Businesses are taking advantage of the solid demand to raise prices, lifting profits, but also fanning inflation at a time of higher oil prices and a currency slump.

More than 1,200 manufacturing firms -- both small and large -- polled by the Reserve Bank