India’s Top 500 Companies 2022

INDIA’S TOP 500 COMPANIES 2022 14 Some key global commodity price surges in Mar-2022 Despite the domestic economic recovery gaining ground, elevated global and domestic prices, hike in policy rates by global central banks, tightening/withdrawal of global monetary policy stimulus, persistent risk of the COVID-19 outbreaks along with geopolitical tensions hampered foreign investors’ sentiment in FY 2022. Foreign portfolio investors pulled out USD 16 bn from the Indian markets in FY 2022 as against a net inflow of USD 36 bn in FY 2021. The heightened risk aversion amongst foreign investors was also reflected in the FDI inflows which registered a growth of mere 2% to USD 83.5 bn in FY 2022 as against a growth of 10% in FY 2021. Policy measures to aid economic recovery In FY21 and FY22, the government introduced various policy measures to boost manufacturing and exports, address infrastructure hurdles and attract fresh foreign capital in the economy. The government has been implementing Production Linked Incentive (PLI) scheme for 14 key sectors of manufacturing which is expected to enhance India’s manufacturing capabilities and exports as well as help achieve its vision of becoming ‘Atmanirbhar’. Further, PM Gati Shakti master plan is a transformative approach for economic growth and sustainable development. The multi-modal connectivity plan launched in October 2021 aims to integrate road, railway, airport, ports and economic zone projects across the country. The initiatives under this plan are expected to bring down logistic costs, reduce inefficiencies in the supply chain in turn enhancing competitiveness of Indian manufacturing sector. The government has also continued with its FDI liberalisation agenda and has relaxed FDI investment norms in insurance sector (raised FDI limit from 49% to 74%), petroleum & natural gas (100% FDI under automatic route) and telecom sector (100% FDI under automatic route). After a long gap, India has resumed its engagement with trade pacts which opens up an opportunity to make the Indian economy export oriented. Brent crude oil prices surged to a 9-year high of ~USD 116/ barrel Price of palm oil touched almost 60-year high of ~USD 1.8 thsd/ mt Price of South African coal touched almost 40-year high of ~USD 294/mt Price of aluminium surged to 33- year high of ~USD 3.5 thsd/ mt Price of wheat (US HRW) touched 6-year high of ~USD 486/mt Price of cotton (A Index) surged to 10-year high of ~USD 3.1/kg Source: World Bank Dun & Bradstreet