Page 101 - Tata_Chemicals_yearly-reports-2021-22

01 INTEGRATED 73 STATUTORY 178 FINANCIAL
REPORTS
REPORT
STATEMENTS
Management Discussion
& Analysis
Management Discussion & Analysis

1. Business Environment COVID-19 vaccination has played a critical role in minimising
a. Global Economic Outlook loss of lives, boosting confidence in the economy towards
resumption of activity and containing the sequential decline
Global economic growth is projected at 3.6% in 2022 after in output. 96% of the adult population has been inoculated
a strong bounce back in 2021. The outlook is mixed with with the first dose, while 82% of the adult population and
reopening of economies supporting greater demand over 3.4 crore children in the 15 to 18 year age group are
coupled with challenges of Eastern Europe conflict having fully vaccinated. Vaccination drive has further been extended
direct and global spillovers through commodity markets. to the age group from 12 years which has further boosted
In addition, there is the continued impact of lockdowns with people’s confidence of returning to normal.
new bottlenecks in global supply chains.
In India, Consumer Price Index (‘CPI’) inflation had moderated
Inflation is expected to remain elevated for longer period to 5.2% in FY 2021-22 (April-December) from 6.6% in the
driven by commodity price increases and broadening price corresponding period of FY 2020-21 but has edged upto
pressures. For Calendar Year (‘CY’) 2022, inflation is projected 6.1% as recorded in February 2022. Energy and food prices
at 5.7% in advanced economies and 8.7% in emerging are major contributing factors to headline inflation. Risks are
markets and developing economies. tilted to the upside amidst sanctions from the West and raw
material shortages.
Energy prices have recorded unprecedented increases
especially natural gas prices in Europe which rose sharply The Government revenues have been growing from robust
above baseline in 2022. Growth in the United States (‘US’) tax incomes. In February 2022, Goods and Services Tax
is expected to be 3.7% in CY 2022, moderating to 2.3% in (‘GST’) collection recorded a year on year (‘y-o-y’) growth of
CY 2023 due to faster withdrawal of monetary support as 17.6%, crossing the ` 1.3 lakh crore mark. Total expenditure
policy tightens to rein in inflation. The European Union (‘EU’) during April-January FY 2021-22 registered a growth of
and the United Kingdom (‘UK’) economies are expected to 11.6% over FY 2020-21, with capital expenditure and revenue
grow by 2.8% and 1.2% respectively in CY 2022. expenditure recording growth of 22% and 9.9% respectively.
Export/Import: Exports registered a growth of 25% on a
Among the Emerging Market and Developing Economies
(‘EMDE’), China is expected to grow by 4.4% in CY 2022. India y-o-y basis. Export growth was broad-based, with ten major
commodity groups accounting for around 80% of exports
is expected to grow at the rate of 8.2% for CY 2022 and 6.9% of the expansion above pre-COVID level. The improvement
in CY 2023. Growth is forecasted to be 4.6% in Middle East in export performance stemmed from higher value of
& Central Asia while 3.8% in Sub-Saharan Africa region for shipments of engineering goods, petroleum products
CY 2022. and chemicals. High import demand was driven by higher
Source: IMF World Economic Outlook April 2022 demand for petroleum products, electronic goods and gold.
Import growth was broad-based, with major commodity
b. India Economic Outlook groups accounting for more than 75% of imports recording
India’s Gross Domestic Product (‘GDP’) growth is estimated an expansion above their pre-COVID levels. Crude imports
to be 8.2% for CY 2022 as against the real GDP growth rate of increased by 41.7% in February 2022 over COVID levels,
8.9% in CY 2021. This growth is despite the impact of higher reflecting the rise in crude oil prices.
oil and commodity prices weighing on private consumption Source: IMF World Economic Outlook April 2022, State of the Economy-
and investment. RBI Bulletin-March 2022

India’s Gross Domestic Product (‘GDP’) growth is estimated to be 8.2% for CY 2022

99