Robust self-belief and resilience – the key to success in times of challenge.
Robust self-belief and resilience are the key to success in times of uncertainty and challenge. This spirit has helped India contend with an unprecedented pandemic and, in rapid succession, a war in Europe with its attendant disruptions. It is indeed creditable that amidst these macroeconomic and geopolitical upheavals, India has managed to stay the course in its quest for growth. Your Company has also performed well while operating within the given constraints. At this juncture, we wish to reiterate our commitment to advance the interests of our country and express our solidarity with the nation and its leadership.
FY 2021-22 was an economic roller coaster with the impact of recurring bouts of COVID-19 and global disquiet counter-balanced to some extent by Country’s economic resilience. Regular government spending throughout the year complemented by liquidity easing measures by the Reserve Bank of India prevented the risk of an economic meltdown and helped bolster the confidence of households and private companies.
An improved borrowing programme for the Centre and State Governments also meant that the spending proposals envisaged in the Budget continued unhindered. Most of the high frequency, mobility and service indicators gained momentum as the easing of pandemic curbs saw demand regaining lost ground before geopolitical tensions erupted to set the clock back once again.
After years of stagnation, India witnessed a pick-up in exports in FY 2021-22. Consequently, the economy expanded at 8.7% in real GDP terms vis-à-vis a contraction in the previous financial year.
India is expected to post top quartile growth among emerging nations in the medium term. Challenges hovering on the horizon include runaway oil prices, supply chain disruptions and the US rate hikes affecting capital flows into India. Despite these roadblocks, however, our view is that the bold structural reforms carried out by the Government in the last couple of years will pave the way for improved quality of growth. A slew of incentive schemes launched by the Government should stimulate manufacturing and exports in our run up to becoming a USD 5 trillion economy. Leveraging its expertise in high-tech manufacturing, your Company is well-positioned to take advantage of the opportunities as they unfold.