Integrated Annual Report 2024-25 80 were dispatched as against 37,744 tractors produced and 35,988 tractors dispatched during the corresponding period in the previous year. India has fair integration with global economy wherein exports / imports each contributing 20-25% of GDP. India’s global approach till now has been guided by strategic autonomy and economic pragmatism. With global economy showing increasing fragmentation and protectionist measures, global supply chain landscape is expected to witness some shifts. Merchandise exports are likely to face headwinds from global uncertainties and trade disruptions. Domestic market (especially certain sectors) is also likely to face some risk of dumping from China and other ASEAN markets. Robust service exports and Government efforts on trade agreements are expected to ease some of the impact. In April 2025, IMF revised its FY26 growth forecast for India down to 6.2%, amid tariff uncertainty. However, it maintained a relatively more stable outlook owing to confidence in private consumption, especially in rural markets. Union Budget FY26 maintained its balanced approach to navigate complex global economic environment. Extension of tax exemption in the Union Budget is likely to have positive impact on discretionary spend over short term. Budget schemes centred around four identified engines of growth i.e. Agriculture, MSMEs, Investments and Exports, are expected to further build positive momentum. With stimulus provided by the Union Budget and RBI monetary policy measures to increase liquidity in the economy, the India consumption story is expected to remain strong to deliver on its growth target for FY26. Finance The global economy grew by 3.3% during CY24 vs earlier forecast of 3.2%. The IMF’s January 2025 outlook projected steady global growth at 3.3% for each of CY25 and CY26, but April 2025 revisions lowered forecasts to 2.8% and 3.0% respectively due to trade tensions and policy uncertainty. Global inflation fell to 5.7% in CY24 from 6.6% in CY23. This is expected to decline to 4.3% for CY25 and 3.6% for CY26. However, policy-generated disruptions to the ongoing disinflation process could interrupt the pivot to easing monetary policy. The U.S. Federal Reserve (Fed) implemented a 100-bps rate cut in CY24. The Dollar Index (DXY) strengthened post U.S. presidential election which boosted investor confidence in policies favouring deregulation and tax cuts. However, post January 2025, the DXY decline began with concerns over the potential economic impact of new tariffs and trade policies, raising recession fears and dampening investor sentiment globally. Despite recent moderation, India’s economic growth has remained robust, with estimated real GDP growth of 6.5% in FY25 by Reserve Bank of India (RBI). Inflation has broadly declined within the tolerance band (currently at 3.6%). The financial sector has remained resilient, with non-performing loans at multi-year lows. Fiscal consolidation has continued, and the current account deficit has remained well contained, supported by strong growth in service exports. In CY25 so far, RBI’s Monetary Policy Committee has reduced the benchmark repo rate by 50 bps to 6.0% from 6.5%, delivering the first rate cuts in last five years. The RBI changed the monetary policy stance from “withdrawal of accommodation” to “neutral” to “accommodative” mostly owing to Trump tariff implications and hinting at further rate cuts during FY26. RBI further reduced the Cash Reserve Rate (CRR) by 50 bps to address tightening of liquidity conditions leading to banking system liquidity turning positive at end of March 2025. RBI has indicated further liquidity easing operations such as OMO purchases, USD/INR Sell/ Buy swaps, rolling over USD forwards among others in a bid to keep liquidity abundant to ensure quick transmission of lower borrowing costs. Indian Rupee remained largely range-bound till November 2024. India’s foreign exchange reserves, which surged to nearly $700 billion by September 2024, played a crucial role in safeguarding the currency against external pressures. However, following the U.S. elections, heightened volatility and equity outflows from India contributed to a sharp decline in the Rupee, touching an all-time low of 87.57 against the U.S. Dollar in January 2025. In March 2025, the Rupee experienced a strong recovery, aided by a weaker dollar driven by concerns over a potential U.S. economic slowdown due to the ongoing trade war. RBI adjusted its FY26 GDP growth forecast to 6.5% while inflation is expected to align with the 4.0% target by FY26. Finance Bill 2025 also focused on unlocking the potential by increasing personal tax exemption limits thereby propelling consumption and simultaneously focusing on gearing up investment. Furthermore, it emphasized measures to support farmers and SMEs, and promoting the Make in India initiative. Banks consistently regard your Company as a highly valued and esteemed client, offering facilities and services at their preferential prime rates. Your Company adheres to a prudent financial strategy, ensuring that financial gearing remains within optimal levels at all times. The Company’s Gross Debt to Equity Ratio is 0.02 as of 31st March, 2025.
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