Mumbai, India – In the last few months, Neetee Clothing, a small manufacturer and exporter of fashion apparel based in Gurgaon, has cut back its working capital loan from its bank by a whopping 80 percent as India’s central bank has hiked interest rates twice since May in an effort to tame soaring inflation.
While the company is dipping into its cash reserves for now, managing director Animesh Saxena told Al Jazeera he is worried that that may not be a sustainable strategy in the months ahead when the peak season for his business kicks in.
