Even as the economies in Europe and America continue to sneeze, the ones in emerging markets, including India, have caught the cold. The September quarter results showed most Indian corporate bearing the brunt of slower economic growth, loss of purchasing power and muted consumer demand. Not surprisingly, many have opted to or have been forced to shelve or defer their expansion plans. Others have tried their hands at cutting costs or repaying expensive debt. Banks that have seen corporate credit demand dry up and NPAs (non performing assets) move up, have given a very muted guidance for the next couple of quarters. Overall, when it comes to near term outlook, India Inc seems to share the consensus that there is more pain left. Interestingly, most MNCs (multinational corporations) are ignoring such facts. Probably because these entities, which are looking for lucrative growth potential in the long term, are not bothered about near term prospects. The likes of FMCG majors Kraft Foods and Coca Cola and engineering major Siemens have readied their cash war chest to invest more in India. However, when it comes to regulated sectors or those entailing land acquisitions and government clearances, the mood is still cautious. It is for India to prove her ability to of fer reasonable returns over the long term through effective policy making and reform execution
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