India’s corporate sector is likely to witness slower earnings growth over the next 12 to 18 months as rising input costs, supply-chain disruptions, rupee depreciation and labour market uncertainty weigh on demand and business investment, according to a report by Moody's Ratings.
Moody’s highlighted three key risks that could drag earnings growth lower over the coming quarters. The first is the rise in input costs and supply disruptions stemming from the ongoing U.S.-Iran conflict. India’s dependence on imports of crude oil, natural gas, cooking fuel and fertilisers has increased the vulnerability of non-financial companies to commodity price shocks and supply-side disruptions.
