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RBI policy meet: Manufacturing to see pressure despite growth expectation

Manufacturers are not in a position to pass on the entire rise in input costs to customers

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Rbi Monetary Policy Review

BS Reporter  |  Mumbai 



RBI, reserve bank of India

The Reserve Bank of India (RBI) sees recovery in growth, which would lead to more demand for finished goods of the manufacturing sector. Capacity utilisation is improving in the sector but so are input costs. One of the key components in the latter would be rising crude oil prices.“Recent firming up of international crude oil prices might reduce net external demand and also adversely impact the profitability of domestic firms by raising input costs,” RBI’s monetary policy report has noted.

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First Published: Sat, April 07 2018. 07:00 IST


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