India’s TOP 500 Companies 2020

INDIA’S TOP 500 COMPANIES 2020 90 India’s imports declining sharply than exports in FY20 -20 -15 -10 -5 0 5 10 15 20 25 FY16 FY17 FY18 FY19 FY20 % y - o - y Axis Title Expor ts Imports Sectors pulling down growth in exports (y-o-y growth in %) FY18 FY19 FY20 Chemicals 14.6 16.5 2.9 Textiles 0.8 2.3 -8.6 Gems & Jewellery -4.3 -3.1 -10.8 Machinery 22.2 18.1 -1.8 Agri & allied products 13.2 3.0 -8.5 Sector supporting growth in Exports (y-o-y growth in %) FY18 FY19 FY20 Ores & minerals 1.5 8.9 27.7 Electronic Items 6.7 38.2 33.7 Net FDI inflows US$ 43 bn in FY20 against US$ 30.7 bn in FY19 Net FII Inflow of US$ 1.4 bn in FY20 against outflow of US$2.4 bn in FY19 Forex Reserves An accretion of US$ 59.5 bn in FY20 against the depletion of US$ 3.3 bn in FY19 CAD 0.9% of GDP in FY20 against 2.1% of GDP in FY19 Merchandise trade deficit US$ 157.5 bn in FY20 agaisnt US$ 180.3 bn in FY19 Source: Ministry of Commerce, RBI Indian economy had already entered the downward growth path before the COVID-19 struck. The outbreak of the pandemic and the consequent implementation of the nationwide lockdown led to significant disruption in the economic activity, turning the health crisis into an economic crisis. The government announced stimulus to support the economy. The ` 20 trn worth of stimulus measures (10% of GDP) to support growth only entails a fiscal cost of a little more than 1% of GDP, which indicates that most of the measures to support growth have been indirectly routed through the monetary system or long-term structural measures. The RBI’s monetary stimulus package were equivalent to 3.6% of GDP. The RBI’s coordinated monetary measures comprised of 115 bps cut in repo rate since March 2020, term loan moratorium, export credit support and Special liquidity facility to NBFCs, Micro Finance Institutions and Housing Finance Corporations. Although India is expected to record a significant contraction during FY20 and downside risks to the economic growth continue to remain, the mitigating measures taken by the government and the RBI will help in bringing Indian economy back on the recovery path. Dun & Bradstreet