The principal message that I wish to send out is that India continues to be one of themost exciting long-term stories in the global economy and Yuken India is attractivelyplaced to capitalise on the country's long-term growth journey.
The global economic growth weakened by 20 bps from 3.8% to 3.6% in 2018 following asustained slowdown in advanced economies.
This slowdown is expected to extend into 2019 on account of the expectations of a tradewar between US and China rebound in the price of oil fallout of Britain's withdrawalfrom the European Union and increased global tensions arising out of sanctions on Iran.
India retained its position as the world's fastest growing economy through a major partof the year under review. The country grew attractively in the first half of 2018-19 butslowed considerably thereafter on account of a liquidity paralysis that affected a numberof prominent downstream sectors. The Indian government responded to this reality bysustaining the pace of economic reforms. The year under review was also influenced by theimpending general elections in India in April-May 2019. In a post-Balance Sheet datedevelopment the pro-business political party that had been in power between 2014 and 2019returned with a sizable majority which should translate into increased reforms in thecoming years. In view of this we believe that India's economic outlook the short-termrealities notwithstanding appear optimistic across the medium-term.
Yuken India is attractively placed to capitalise on this reality. The Company servicesthe mission-critical needs of core sectors within the country. The result is that eachwave of the country's economic growth is likely to generate a positive pass-through forthe Company. The Company is capital-light enjoys long-standing customer engagementspossesses extensive domain knowledge and is attractively placed to grow its businessthrough networth. During the year under review the Company capitalised on the fundamentalrobustness of the Indian economy and the increased capital spending by large players. Thistranslated into increased revenues in 2018-19 and an attractive increase in order book bythe close of the year under review. I am optimistic that this business foundation shouldtranslate into sustainable growth across the coming years.
On behalf of Yuken I take this opportunity to thank all the stakeholders for theiresteemed support. We are committed to enhance shareholder value and remain humbled by thetrust and support extended. Koichi Oba