New Delhi, October 10 (PTI) The high cost of inputs, soaring global commodity prices, the shortage of containers and the unavailability of some raw materials, such as semiconductors, will impact demand and production possibilities in the coming months, industrial chamber PHDCCI said Sunday.
PHDCCI President Pradeep Multani said that the prices of basic raw materials have increased by more than 50 percent in the past year and that they pose a challenge for small businesses to operate as this has an impact on production costs and affects competitiveness in international markets.
At this point, he said, there is a need to tackle high commodity prices and commodity shortages to support consumption and private investment in the country.
âAlthough economic activity remained intact in September, the high cost of inputs compared to soaring international commodity prices, container shortages and the unavailability of some raw materials, such as semiconductors, will have an impact on demand and production possibilities in the coming month, âhe said.
He added that the drivers of household consumption need to be further strengthened to improve aggregate demand as this will have an accelerated effect on expanding capital investment.
More and more direct benefit transfers need to be considered for the urban and rural poor as part of various social assistance programs in addition to the distribution of free dry rations until Diwali, Multani suggested.
Vaccination of the population must continue at a faster pace, he added. PTI RR ANU
Disclaimer: – This story has not been edited by Outlook staff and is auto-generated from news agency feeds. Source: PTI