India’s Top 500 Value Creators 2023

India’s Top 500 Value Creators 2023 | 13 [ INDIAN ECONOMY UPDATE ] INDIAN ECONOMY REBOUNDING TO THE PRE-PANDEMIC GROWTH TRAJECTORY Amidst the global headwinds, Indian economy sus ta i ned i t s growth momentumwith a robust GDP growth rate of 7.2% in FY23. The consumption and investment almost returned to the pre-pandemic growth trajectory driven by the release of pent-up demand and robust public and private capital expenditure. Domestic demand grew by 7.5% in FY23 largely led by revival in demand for contact-based services consequent to the near-universal vaccination. Besides, easing of the pandemic-related risk and restrictions boosted the consumer confidence, in turn propelling private consumption demand. The revival in private demand was also evident from some high frequency indicators (HFI) such as personal loans, housing loan, and credit card outstanding all of which showed impressive growth in FY23. The growth in private consumption enabled the government to gradually withdraw pandemic-related stimulus measures. Evidently, government expenditure grew by merely 0.13% in FY23 as against 6.57% in FY22. India’s GDP rebounding to pre-pandemic growth trajectory Source: MOSPI Investment activity also remained strong, growing by 11.4% in FY23, given the crowding-in of private sector investment by a significant increase in public sector investment. Capex by the government grew by almost 26% in FY23, providing significant impetus to the growth. Private sector capex also gained traction driven by healthy balance sheets and improved cash flow. On supply side, Gross Value Added (GVA) reported a growth of 7% in FY23, driven by strong growth in agriculture, construction, and services sectors. Within services, contact-base services like trade, hotels, transport, communication, and services related to broadcasting grew by almost 14% in FY23 surpassing their pre-pandemic level due to the removal of mobility restrictions, the release of pent-up demand, and higher vaccination coverage. PMI services also remained in an expansionary zone in FY23 given the improvement in new business intakes, and increased orders. Dun & Bradstreet