Arohan Financial Services Limited | Annual Report 2022-23

Cha i rma n ’s Ad d r e ss Dear Shareholders, I amdelighted to connect with you through the Annual Report of Arohan Financial Services Limited. The global economic outlook is currently characterised by uncertainties arising from various factors, including financial sector turmoil, high inflation, the ongoing repercussions of Russia’s invasion of Ukraine, and the persistent effects of the COVID-19 pandemic. The International Monetary Fund predicts a decline in global economic growth from 3.4% in 2022 to 2.8% in 2023, followed by a moderate recovery to 3.0% in 2024. Advanced economies are expected to experience a more pronounced deceleration, with growth rates dropping from 2.7% in 2022 to 1.3% in 2023. In an alternative scenario with additional financial sector stress, global growth could contract further to around 2.5% in 2023, with advanced economies experiencing growth rates below 1%. Despite a projected decrease in global headline inflation from 8.7% in 2022 to 7.0% in 2023 due to lower commodity prices, underlying or core inflation is likely to decline more slowly. Achieving inflation targets is anticipated to be challenging, with a return to target levels unlikely before 2025 for most economies. According to the World Bank, India’s real GDP is estimated to have expanded by 6.9% in FY 2023. This growth was driven by strong domestic demand, robust investment activity supported by the government’s focus on infrastructure investment, and increased private consumption, especially among higher- income groups. However, the composition of domestic demand underwent changes, with lower government consumption due to fiscal consolidation efforts. On India’s 75th Independence Day, our Honourable Prime Minister Shri Narendra Modi introduced the concept of “Amrit Kaal” or “The Era of Elixir” to the nation. Amrit Kaal represents the Prime Minister’s vision for a “New India” by 2047, which aims to fulfil the nation’s aspirations. The vision encompasses rapid and profitable economic growth, improved living conditions for all citizens, advancements in infrastructure and technology, and restoring global confidence in India. India’s goal of attaining high-income status by 2047 requires inclusive growth that benefits the entire population. Reforms focused on growth need to be accompanied by the creation of quality jobs that keep up with the influx of new entrants into the labour market. Additionally, efforts will be made to address gaps in economic participation, including promoting greater female workforce participation. 1 | Annual Report 2022-23