India’s Top 500 Companies 2022

INDIA’S TOP 500 COMPANIES 2022 13 The rebound in consumer confidence in FY 2022 was further reflected in the business optimism levels. The PurchasingManagers’ Index for bothmanufacturing and services remained above 50 during most part of FY 2022, indicating expansion in the business activity. The Index of Industrial Production and eight core industry indices also showed recovery in tandem with the surge in business optimism. The uptick in government expenditure on infrastructure also provided much required impetus to the economy. Moreover, India achieved its export target for the first time ever as India’s merchandised exports rose by 44% in FY 2022 to USD 419.6 bn on the back of higher international commodity prices and recuperating global demand. The impressive growth in exports was primarily led by sectors such as petroleum products, engineering, gems & jewellery and chemicals. India’s exports outperforms global exports in FY ‘22 India’s export growth (in %) Global exports growth (in %) While the domestic economy was getting on a track, sporadic outbreaks of coronavirus variants continued to curtail economic activity during FY 2022. Supply-chain related challenges also hampered the manufacturing sector during FY 2022. Shortage of raw materials due to supply-chain issues, surge in international energy and commodity prices and high logistics costs had bearing on input prices. Global crude oil and commodity prices soared to multiyear high due to tensions between Russia and Ukraine which are major commodity producers and exporters. This has exerted upward pressure on domestic wholesale and retail prices. High and sticky core inflation is daunting as corporates face margin pressure due to high input costs which ultimately erode corporate earnings. The risks posed by the geopolitical tension in terms of higher prices and supply side disruptions, broadening of growth impulses and rapidly generalizing inflationary pressures led the RBI’s monetary policy committee to announce a surprise policy repo rate hike of 40 bps to 4.40% in an off-cycle meeting in May 2022. The US Fed rate was also hiked by a half percentage point to 0.75-1% in May 2022. 10% 44% 30% 9% -5% -7% -2% -4% 6% 12% FY18 FY19 FY20 FY21 FY22 Note: For comparison annual global exports taken for April to March period for each year For FY22, world exports data is upto April-December 2021 period Source: RBI & World Trade Organisation -10% 0 10% 20% 30% 40% 50% % Y-O-Y Growth Dun & Bradstreet