Indian workers of a private garment factory
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Tough choice for India manufacturing

India's manufacturing sector has been hit by higher interest rates, but policymakers say the measure is necessary to rein in inflation.

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.