India’s Top 500 Value Creators 2023

India’s Top 500 Value Creators 2023 | 15 [ INDIAN ECONOMY UPDATE ] Growth in industry though showed some recovery on the back of rebound in mining & quarrying, electricity and construction sectors, dismal growth in manufacturing sector hindered its ascend to the complete recovery. In FY23, manufacturing sector world over was adversely impacted by supply chain disrupt ions due to geo-political tensions and high raw material costs, which did not leave India unscathed too. Index of Industrial Production (IIP), an important high frequency indicator for industrial sector growth, moved towards pre- pandemic growth trajectory growing by 5.2% in FY23 as against 3.8% in FY19, a pre-pandemic year. In terms of use-based classification, capital goods and infrastructure/ construction goods witnessed notable increase in IIP, pointing towards pick-up in capital formation in the economy. Within manufacturing, sectors like coke & refined petroleum products, chemical & chemical products, basic metals, machinery & equipment and motor vehicles, trailers & semi-trailers which cumulatively account for 42% of weightage in IIP, outperformed from their pre-pandemic performance in FY19 due to surge in global oil & metal prices, and gradual recovery in rural demand. However, there were several other manufacturing sectors like textile, leather, pharmaceuticals, medicinal chemical & botanical products, rubber & plastic products, non-metallic mineral products, and electrical equipment, etc. which pulled down growth of manufacturing IIP in FY23. The deceleration in these sectors can partially be attributed to lingering weakness in manufacturing exports. Sectors that ascended to pre-pandemic growth level Source: MOSPI RETAIL INFLATION HOVERING AROUND 6% DURING MOST PART OF FY23 Consumer Price Index (CPI) inflation largely hovered around 6% during FY23 and consistently stayed above the RBI’s upper tolerance level of 6% during the first half of the fiscal. Wholesale price inflation (WPI), that climbed to 16.6% in May 2022, started retreating from June 2022 and eased to a low of 1.4% in March 2023. The surge in domestic inflation can largely be attributed to the supply chain disruptions due to geo-political tensions that caused indiscriminate hike in the global commodity and oil prices in FY23. With the CPI inflation ruling above RBI’s tolerance level during most part of FY23, various coordinated measures were taken by the government and the RBI to contain inflationary pressures. A cut in price for commercial LPG cylinder in June 2022, and maintaining buffer stock of some important commodities like pulses provided some respite on inflation front. Dun & Bradstreet