January 2023 Market Insights Archive

Wonder what set the tone for India's economy in early 2023? This archive pulls together the most useful updates we shared in January, so you can see the patterns that mattered.

What drove the economy in January?

The first month saw a surprise bump in manufacturing output, thanks to a short‑term policy tweak that lowered freight costs. Companies quickly adjusted, and we noticed a spike in export orders from the Gulf region. The numbers were clear: a 2.4% rise in factory production compared with December.

At the same time, the consumer goods sector felt the pinch of rising raw‑material prices. We broke down how brands responded – from tweaking pack sizes to rolling out modest price hikes. The data showed a modest dip in FMCG sales, but the shift in packaging helped many firms keep margins afloat.

Key policy moves and their impact

January also brought a new tax incentive for small tech startups. The government announced a 20% rebate on research expenses for firms with less than 50 employees. Our analysis highlighted three startups that secured early funding by leveraging this rebate, and the move sparked a flurry of new venture capital deals.

Another headline was the RBI's decision to hold the repo rate steady. While the move was expected, we explained how it affected loan growth for micro‑enterprises. The steady rate gave lenders confidence to extend credit, which led to a 1.8% rise in small‑business loans.

We didn’t just list the facts – we dug into what they meant for everyday businesses. For example, retailers in Tier‑2 cities could expect slightly better cash flow thanks to the loan uptick, while exporters needed to monitor freight‑cost changes closely.

Consumer sentiment also shifted. A quick poll we ran showed a modest rise in confidence, with 58% of shoppers saying they felt “optimistic” about the year ahead. The optimism was largely driven by lower fuel prices at the start of the month.

Our coverage of the real estate market revealed a cooling in luxury property sales but steady demand for affordable housing projects. Developers responded by accelerating low‑cost projects, and that move helped keep construction employment stable.

Looking at the tech scene, we noted a surge in AI‑related job postings. Companies were eager to add data scientists and machine‑learning engineers, reflecting a broader push toward digital transformation across sectors.

Finally, we wrapped up the month with a quick guide on how businesses can use the January data to plan Q2 strategies. The advice was simple: focus on cost‑control in FMCG, tap into the startup tax rebate, and watch freight rates for export planning.

All these pieces form a clear picture of the forces shaping India’s market in January 2023. Browse the archive, pick the topics that matter to you, and stay ahead of the curve as the year unfolds.