Davos 2023: India's Tractor Demand Robust Despite Inflation, Says M&M's Jejurikar
There's a decoupling in auto and farm sectors as domestic demand remains robust amid fears of a global slowdown, Jejurikar said.
Demand for tractors will continue to grow despite the spiraling inflation worldwide, according to Mahindra & Mahindra Ltd.'s Rajesh Jejurikar.
"We feel reasonably insulated from what's happening around the world," Jejurikar, executive director-auto and farm sectors, at Mahindra & Mahindra, told BQ Prime's Niraj Shah, on the sidelines of the World Economic Forum in Davos.
However, the global slowdown may soften commodity prices more and it can have a positive effect on the company, he said.
Jejurikar also underscored that there is a "significant decoupling" in the auto and farm sectors as domestic demand remains robust, even as fears of a global slowdown continue to loom.
"India has been used to inflation and the rest of the world is not," he said.
According to him, the Indian consumer and the industry "know" how to handle it.
Positive enablers for 2023 include farm output, a good monsoon, softening interest rates and an increase in government spending, he said.