Indian Inflation and Retailers

Indian Inflation is up to 12.14 per cent till September what will happen next it is undecided because there are still 4 months in this year. It is higher inflation rate in Indian economy. About it HT writes,

“Inflation for the week ended July 12 was revised up to 12.13 per cent from 11.89 per cent.

The annual inflation rate was 3.46 per cent during the corresponding week of the previous year.”

Along with this inflation retailers has some new mantra or tips to sell their products. With the HT in other news you can read also it,

“Driving more consumption in each store and bringing up innovative, profitable formats are the two priorities for Indian retailers today,” said Ireena Vittal, partner, McKinsey & Company.”

It means I have already wrote about industrial growth of India. And now here after all the inflation we are seeing growth in retails market. Then question is why inflation is growing and money where is going?

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Industrial Growth in July

The last July was for Indian industrial growth. It was up to 7.1% however it is lower than last year because in the last year it was about 8.3%. The growth is a breath for Indian government because inflation was tension for the government.

About its growth Hindustan Times writes, “While the manufacturing, which contributes about 80 per cent to IIP, grew by 7.5 per cent in July, compared with 8.8 per cent a year ago, electricity generation was up by 4.5 per cent, against 7.5 per cent.” Hindustan Times is an online and off line daily news paper. Further it writes, “As such, industrial growth turned out to be 5.7 per cent in the first four months of this fiscal, against 9.7 per cent a year ago.”

This analysis can be accurate but what is the cause of industrial growth however inflation was high for the Indian state. It is recent update for last July. In my analysis it is the cause of Bihar flood and nothing else.

Before it there was no scene to invest and growth. All the economy was in inflation and Sensex was down. There was no need of production but now its need has developed because Bihar flood has destroy about 5 lack people home and economy.

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Car Market

In the car market all the big companies are ready to launch their brand after TATA's Nano. Economy is slowdown and car market is also bearish but all the company creating market for car, why? I don't think the economy will cover its inflations after a year but what about car industries.

TATA, Hayndai, Bajaj, Honda, or BMW now all are targeting for Indian market to invest. They are thinking India is in growing market and here small car has more demand but they don't think that after inflations and economical problem what customer are thinking.

I think all the market are in slow down along with car market. A news announced that rather than new car used car on more sell. “In this fiscal so far, we have sold almost 44,000 used cars at a growth of 31 per cent,” said Ravi Bhatia who is the General Manager of Maruti Suzuki India Ltd.

According to review about 78% people are using 1st time buying car while 1.15% is increasement in the used car and expecting it will be about 2.6% by the 2010.

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