Indian firms could see a contraction in margins and the pace of ratings upgrades is expected to slow. “Hardening interest rates and unwinding of various pandemic-related funding measures could create liquidity challenges, especially for the mid-corporates," Ind-Ra said. “A likely slowdown in export demand and headwinds on account of increasing household leverage and declining incomes will impact consumption." This story has been published from a wire agency feed without modifications to the text.