With a slowdown looming large in domestic consumption, Indian paint producers are increasingly looking outwards for an alternative source of income. While a few of the players have their manufacturing plants in neighbouring countries, others are looking outwards to export from their Indian operations. Domestic paint demand has not had a very good time, since the economy started feeling the heat in 2011 due to inflation going out of control. The stimulus-led domestic consumption, coupled with supply side constraints, resulted high inflation in the country. While, monetary policy was tightened to control the runaway inflation, the external headwinds, as well as political bottlenecks and lack of infrastructure investments, continued to put pressure on growth. The slowdown-especially in 2012-13-has been across the board, hitting the construction segment badly and affecting the Indian paint industry.
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