India’s Top 500 Companies 2019

INDIA’S TOP 500 COMPANIES 2019 73 Indian consumption story failing to support economic growth Government consumption aided growth in toal consumption 0 2 4 6 8 10 0 2 4 6 8 10 12 14 16 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 % % GDP (RHS) consumption investment 0 2 4 6 8 10 12 14 0 5 10 15 20 25 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Q1 FY19 Q2 FY19 Q3 FY19 % % Total consumption (RHS) GFCE PFCE Note: consumption = GFCE + PFCE GFCE: Government Final Consumption Expenditure; PFCE: Private Finance Consumption Expenditure Source: MOSPI Performance of major sectors (at 2011-12 constant prices; % y-o-y growth) GVA GCF FY17 FY18 FY17 FY18 Agriculture, forestry & fishing 6.3 5.0 12.7 2.2 Industry 7.7 5.9 -0.7 7.6 Mining & quarrying 9.5 5.1 16.4 7.1 Manufacturing 7.9 5.9 1.3 8.0 Electricity, gas, water supply & other utility services 10.0 8.6 -12.9 6.1 Construction 6.1 5.6 10.1 8.4 Services 8.4 8.1 7.2 11.8 Trade, hotels, transport, communication and services related to broadcasting 7.7 7.8 9.2 11.3 Financial, real estate & prof services 8.7 6.2 2.3 10.5 Public Administration, defence and other services 9.2 11.9 12.2 14.1 Total 7.9 6.9 4.7 9.7 GVA: Gross Value Addition; GCF: Gross Capital Formation Source: MOSPI, Ministry of Commerce While consumption demand remained subdued, growth in investment witnessed some revival on the back of policy efforts such as improvement in the ease of doing business, expediting resolution of distressed assets and addressing the NPA problem of the banking sector. The rising capacity utilisation in some industries also aided growth in investment. The production of capital goods sector, a key indicator of investment activity also reported improvement in growth during FY18-FY19. With the weakness in domestic consumption, the inflationary pressures largely remained contained during FY18 and FY19. The CPI inflation however surged above the RBI’s target level of 4% during Nov-17 to Jul-18 on the back of increase in consumer food price and fuel & light inflation. However, thereafter inflationary pressures eased due to fall in food inflation. On WPI front, surging global oil prices led WPI inflation rise to 5% during Q2 FY19. Dun & Bradstreet