'In 2023, we are likely to see inflation gradually moderate': Tata chief's New Year letter to employees

Tata Sons chief N Chandrasekaran on Monday told his employees ahead of the new year that inflation is likely to gradually moderate in 2023 and that the conglomerate experienced "significant milestones" during 2022. 

"Post-pandemic, India opened up, and we have returned to living our daily lives normally, in a year that saw the nation turn 75 years old. Business momentum has been strong for many of our companies. We have experienced significant milestones during the year, including the welcoming of Air India back to the Group; the launch of Tata Neu; and Tata Motors passenger vehicles crossing 500,000 cars sold within a calendar year, with Tata EV cars accounting for 10%. There has been a good improvement and a strong performance of companies across the Group," Chandrasekaran told his employees. 

However, Chandrasekaran said "several risk factors" threaten to beset the global environment.

"The global environment has several risk factors, including the energy crisis in Europe, the battle to contain inflation to avoid recession, and ongoing geopolitical conflicts. Barring the pandemic and the global financial crisis, next year may mark the lowest global growth since the millennium began. We will need to keep careful watch on commodity price rises, in particular," he wrote. 

"That said, next year we are likely to see inflation gradually moderate. India is well positioned, and we will continue to be the fastest growing major economy, supported by increasing consumption, consumer confidence and investment. Slowing global growth may act as a drag on output, but our rising share of global manufacturing should provide some buffer/insulation," added Chandrasekaran.

He said Tata Sons, in 2022, launched new initiatives to participate in global supply chains.

"On Sustainability, we have devised a Group-wide Project — “Aalingana” (Embrace). Our approach encompasses three interconnected pillars: reducing emissions to reach net zero by 2045; pioneering circular economies through sharing, reusing and recycling; and preserving and restoring nature and biodiversity. We are excited to accelerate this journey during 2023.

"Against this backdrop, we face the future confidently to achieve more, not only for our businesses and shareholders, but our country and communities. We can shape this moment to set new standards in technology, manufacturing and sustainability."