Interest rates rise - An instrumental action impediment

In India enhanced disposable incomes have resulted in increase in consumption levels. But when it comes to Indian consumers involving in High Involvement purchase decisions, like for eg., buying a car or a home, the impediment that they face is high interest rates that makes for costly financing options. Financing, an instrumental action today is responsible, more than any other factor, for dissuading buyers in India from engaging in High Involvement purchase decisions.

Purchasing in complex decision making is not likely to be immediate. In spite off a lot of though about making the 'right' purchase decision, consumers in India have put of their actual purchase action due to climbing interest rates that makes it very difficult for them to manage the EMIs that accompany a loan. This in turn is being expected to lead to a correction in the Indian market place resulting in drop in prices.

We are now witnessing the start to this drop.

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