India’s TOP 500 Companies 2021

INDIA’S TOP 500 COMPANIES 2021 104 The pandemic and the consequent disruption in economic activity disproportionately affected the informal workers, in turn adversely impacting consumption demand particularly in the urban area. Nonetheless, a slew of fiscal measures taken by the government along with sustained growth in the agricultural sector helped the rural demand to remain resilient. Key policy responses by the government and the RBI that helped the economy to gain traction Fiscal Monetary Structural reforms The fiscal package of ` 25 trillion (~12% of GDP) declared in three tranches Emergency Credit Line Guarantee Scheme for MSMEs Production Linked Incentives to boost self-reliant India Repo and reverse repo rate reduced by 115 and 155 basis points to 4% and 3.35% CRR reduced to 3.5% Targeted Long Term Repo Operations for fresh deployment in corporate bonds, commercial papers and non-convertible debentures Term loan moratorium and deferment of interest Passed three farm sector bills New MSME definition covering almost 99% of all firms Commercial mining in coal sector Announced to privatise PSUs in non- strategic sectors Source: Ministry of Finance The continuous drop in new COVID-19 cases since September 2020, enabled further unlocking of the economy. This rekindled the prospects for revival in consumption and investment activity largely due to the pent-up demand. The revamped economic activity was first captured in the high frequency indicators like eight core industries, industrial production of consumer durables & non-durables, GST collections and merchandise trade etc. Inflationary pressures started emerging in wholesale prices particularly in the second half of FY21 due to rise in international prices of industrial inputs like agricultural raw material, base metals and crude oil. IIP consumer durables showed V-shape recovery since Q2 FY21 (% y-o-y Growth) GST revenue collections ( ` bn) witnessed steady revival and consistently remained above ` 1,000 bn mark since October 2020 -80 -60 -40 -20 0 20 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY21 8-core industries IIP General IIP-Consumer durables IIP-Consumer non-durables - 200 400 600 800 1,000 1,200 1,400 Apr-19 Jun-19 Aug-19 Oct-19 Dec-19 Feb-20 Apr-20 Jun-20 Aug-20 Oct-20 Dec-20 Feb-21 Dun & Bradstreet