Global economic growth in FY2019 was powered by emerging markets as the large advancedeconomies witnessed subdued economic activity. Fiscal stimuli helped the US economy expandas tax cuts and spending hikes gave a fillip to demand somewhat negating the effect ofthe increasingly protectionist rhetoric on trade. Slower export growth as well aspolitical and industrial uncertainties impacted growth in the Euro region. Asia and thePacific region continued to stay ahead of the curve as among the world's fastest growingregions.
The Indian economy faced headwinds in the form of declining growth of privateconsumption tepid increase in fixed investment and muted exports. On the brighter sideinflation was under check in FY2019 mainly driven by lower food prices and comfortableCurrent Account Deficit position. India's GDP expanded by 6.8% in FY2019. Recovery ofinvestment and consumption a favourable monetary policy and fiscal policy impetus areexpected to aid growth in the coming years with IMF World Economic Outlook reportprojecting India's growth at 7.3% in CY2019 and 7.5% in CY2020.
The Indian equity capital market was muted in FY2019 due to various reasons like FPIoutflow for much of the year continued pressure on mid-caps drying out of fresh publicissuances in the second half of the year and the NBFC liquidity crisis. However despitethe regulatory changes implemented during the year Mutual Funds continued to benefit fromthe growing investor interest in this financial savings instrument and closed the yearwith 11.41% rise in total Assets under Management ('AUM').
Your Company plays a key role in meeting life cycle needs of individuals as well ascorporates. We are a bridge between those seeking capital (corporates government etc.)and those having capital to deploy (retail HNIs FIs etc.).
India offers tremendous opportunity as we are in the midst of a structural shift underwhich household savings are shifting from physical assets like gold and property tofinancial assets like bank FDs MFs and direct equity. There is a growing realisation thatequity exposure-direct or managed-is essential for long-term wealth creation.
As a one stop financial supermarket your Company serves the entire life cycle needs ofan individual by meeting their savings & investment as well as protection needs. Ouraward-winning trading platform icicidirect.com follows an open architecture model forinvestment products backed by research thereby helping customers make informedinvestment choices.
With growing GDP there are increased institutional activities as companies eitherraise capital or merge or demerge businesses. This bodes well for our Corporate Financebusiness as we have over the years built a strong franchise and enjoy deep relationshipwith both buy side as well as sell side stakeholders.
As a consumer-centric organisation while we are proud of our legacy; we do not rest onour laurels. We continue to invest in people processes and technology towards greaterstakeholder value creation. Going forward digitisation is our clear focus area as wereorient our entire delivery strategy to make it more customer centric and seamless. YourCompany is evaluating deployment of cutting edge initiatives like artificial intelligenceadvanced analytics and machine learning to constantly improve customer experience.
On the CSR and sustainability side we actively work with the communities to promotefinancial literacy entrepreneurship and skill development. We constantly evaluate ourprogrammes to improve their efficacy in delivering a better impact to the society.
I would like to take this opportunity to thank all of you-and our customers partnersassociates employees communities and the regulators-for your continued support andtrust in our long-term story as we complete one year of being a publicly listed Companyand continue forward on this exciting path. Let me take this opportunity to also welcomeVijay Chandok as the new Managing Director & CEO of the Company and wish him the bestin his new journey.
With best wishes
Vinod Kumar Dhall