India Inc Thrived in 10 Years of Manmohan Singh Government

Net sales compound annual growth rate topped 19%, earnings expanded by 14%

- Krishna Kant

Corporate India witnessed robust revenue and profit growth during the two-term tenure of the Manmohan Singh-led government, but the momentum slowed sharply during the first term of the Narendra Modi administration before witnessing a recovery in the post-Covid period.

While the last five years have been a standout period for net profit growth, thanks to margin expansion and a corporation tax cut in September 2019, revenue growth remains muted compared to the Singh years when it was in double-digits.

Listed companies across sectors in Business Standard's sample recorded a compound annual growth rate (CAGR) of 19.3 per cent in net sales (gross interest income for lenders) during FY04-FY14, which decelerated to 7.3 per cent during FY14-FY24. Total net sales increased from ₹10 trillion in FY04 to ₹58.8 trillion in FY14, and further to ₹119.4 trillion in FY24.

Net profit growth, adjusted for exceptional gains and losses, also slowed during the past decade. The CAGR for net profits dropped to 11.6 per cent in FY14-FY24 from 14.1 per cent during FY04-FY14.