There Is Threat Of Post-Covid Inflation Becoming Sticky: AIMA President

There is a threat of post-Covid inflation becoming sticky because of disruption of global markets for energy, food, finance and raw material, AIMA President C K Ranganathan said on Tuesday.

Geopolitics is making things worse, as "the battle of bans between the powerful adversaries is feeding fears of shortages and inflationary expectations", Mr Ranganathan, who is also chairman & managing director of CavinKare, said.

Supply chain disruption during the pandemic and later Russia's war in Ukraine have pushed up prices of commodities. Leading economies like the US, Europe and Japan are battling with high inflation which has raised prospects of high interest rates.

"However, India has many intrinsic advantages and it can leverage those to overcome the challenges posed by the great uncertainty and change in the world," said Mr Ranganathan while delivering his address at AIMA's National Management Convention.

The Indian leaders would have to be mindful of unpredictability of geopolitical events and policy actions to bring the country's advantages into play, Mr Ranganathan said.

The key is to focus on India's sustainable advantages such a strong domestic economy, geographical size and talent pool and not get carried away by the worries about the present instability in the world. 

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