Epack Durable Ltd Management Discussions

global economic overview

The world economy grew by 3.2% in 2024, maintaining the pace of growth despite headwinds of ongoing geopolitical tensions. The US economy remained strong, supported by a tight labour market and steady domestic demand, whereas the Eurozone struggled with structural challenges, particularly in energy-intensive sectors. Advanced economies witnessed a growth rate of 1.8%, while Emerging Market and Developing Economies

(EMDEs) continued to show resilience with 4.3% growth. India and Southeast Asia led global growth, fuelled by robust domestic consumption, digital innovation and infrastructure investments. Chinas recovery was tempered by headwinds from a property sector downturn and weaker external demand.

Global disinflation continued, with progress stalling in some countries while elevated inflation persisting in a few cases.

outlook

The global economic outlook for 2025 reflects an intricate mix of challenges and opportunities, shaped by evolving trade dynamics and shifting policy priorities. While advanced economies are on track to meet inflation targets sooner,

Emerging Market and Developing Economies (EMDEs), particularly China and India, are expected to maintain steady growth momentum. However, escalating trade tensions, most notably recent U.S. tariffs and retaliatory measures, pose risks to global trade, potentially fuelling inflation and dampening economic activity. Global GDP is projected to grow by 2.8% in 2025 and 3.0% in 2026, marking a slowdown from previous years. Advanced economies are forecasted to expand by 1.4% in 2025 and 1.5% in 2026, continuing a trend of modest growth, while EMDEs are expected to grow at a healthier pace of 3.7% and 3.9%, respectively. However, amid these headwinds, technological innovation and strategic policy initiatives are expected to reflect economic resilience in the coming period.

(Source: IMF – World Economic Outlook April 2025)

indian economic overview

As compared to global peers, the Indian economy has exhibited strong resilience amidst global uncertainty and emerged as one of the fastest-growing major economies in the world. Robust domestic demand, structural reforms and policy support are the major drivers for economic growth. As per the Second Advance Estimates of GDP, Indias GDP growth is expected at 6.5% in FY 2024-25, much lower than

9.2% GDP growth in FY 2023-24. This slowdown reflects a combination of domestic challenges, including a sluggish manufacturing sector, persistent food inflation, subdued urban demand, a widening trade deficit and a decline in private investment activity.

Despite the slowdown, India continued a stable growth path, driven by growing services and increased infrastructure spending. Government initiatives to promote digital transformation, financial inclusion and ease of doing business further supported growth. Efforts to diversify trade and sign new free trade agreements (FTAs) helped reduce external risks. Rising urbanisation and a growing middle class also contributed to higher consumer spending.

Inflation remained a concern in FY 2024-25 due to global supply chain disruptions and volatile commodity prices.

In response to evolving economic conditions, the Reserve Bank of India (RBI)s Monetary Policy Committee (MPC) unanimously decided to reduce the repo rate by 25 basis points twice since February 2025, bringing it down to 6% on April 9, 2025 from 6.5%, while maintaining accommodative stance on economy. Consumer Price Index (CPI) inflation is estimated at 4.9% in FY 2024-25, down from 5.4% in the previous year and is projected to reduce further to 4.0% in FY 2025-26.

Agriculture sectors remain on a positive footing, supported by healthy reservoir levels and robust crop production, which is expected to sustain rural demand. Manufacturing sector also showing early signs of revival amid improved business sentiment and the service sector continue to demonstrate resilience. Investment activity is gaining traction on the back of higher capacity utilisation, continued government focus on infrastructure and strong balance sheets of banks and corporates. While service exports are likely to remain steady, merchandise exports could face headwinds from global uncertainties and trade disruptions. outlook

Led by the governments push for digital transformation, financial inclusion, substantial investment and ease of doing business, the Indian economy is expected to exhibit strong resilience. As per the RBI estimates, the Indian economy is expected to grow by 6.5% in FY 2025-26. Healthy agricultural a incomes from normal monsoons, a recovery in industrial activity, and stronger household consumption aided by tax reliefs in Union Budget 2025-26 are expected to support in economic growth in FY 2025-26.

Source: RBI, 2(nd) advance estimates of Statistics and Programme Implementation (MOSPI)

industry overview ndian consumer Durable industry

India is the fastest growing consumer durable industry in the world. In the past 5 years, during the period between FY19 – FY24, the industry has grown at a CAGR of 10%. The industry contributes 0.6% of the countrys GDP in FY24 and act as a significant pillar in supporting the countrys growing economy.