Indian workers of a private garment factory
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India manufacturing hit by higher interest rates

India's manufacturing sector - a key driver of the economy - has slowed over the last two years, dragged down by higher interest rates.

Critics say this has hurt domestic demand because it is harder for businesses and customers to borrow money.

But others say central bankers needed to raise interest rates to rein in inflation.

The BBC's Puneet Pal Singh reports on the challenges to India's economic prosperity.

  • 28 Jan 2014
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