New Delhi, Feb. 11: Corporate India has said that it is not responsible for the current round of inflation. They said they have kept prices in check despite a rise in input prices.

“Selling prices are not expected to increase drastically. This shows that the current inflation is largely due to the spurt in food prices,” according to the third quarter business confidence survey (BCS) for the current fiscal conducted by the Federation of Indian Chambers of Commerce and Industry (Ficci).

While 70 per cent of the respondents expressed concern over the rising input costs, 66 per cent expected to keep their selling price at the present level. The survey drew responses from 320 companies from sectors such as pharmaceuticals, textiles, telecom, food and beverages, heavy equipment and machinery, financial services, chemicals and fertilisers.

Exports and investment expectations over the next six months remain low. “The industry’s guarded approach towards investments and exports marks a departure from the previous round,” the survey stated. The investment outlook has taken a hit due to spiralling capital goods prices coupled with the rising cost of credit. The investment index has plunged from 50 in the previous quarter to 39 this time.

Expectations of lower exports against the recent deceleration in export figures has given further weight to industry’s concern on continued rise in input prices and the appreciating rupee.

The survey stated that the government’s move to reduce customs duty on items used as industrial inputs and capital goods is on the right track.

“It is time the government moves full stream on structural reform measures to bolster the supply side,” the Ficci survey said. The industry is also feeling the threat of imports. Nearly one-third of the respondents complained of it while in the last survey only a quarter felt this way.