India Inc. Shines Amid Global Economic Uncertainties

India Inc. continues to display robust financial health amidst global economic challenges, with its corporate credit ratings witnessing significant upgrades. Sectors like hospitality, aviation, and steel have notably recovered post-pandemic. Despite global trade uncertainties, key industries maintain their resilience, bolstered by sound financial strategies and government linkages.

In a testament to its financial resilience, India Inc. has emerged strong despite looming global economic uncertainties. Recent data from ICRA indicates that FY2025 marked a fourth consecutive year of credit profile enhancements.

The corporate sector witnessed 301 credit upgrades compared to 150 downgrades, maintaining a favorable credit ratio of 2.0x. This trend suggests an enduring financial robustness, largely attributed to extended deleveraging phases and sustained profit growth.

Key sectors like hospitality, aviation, and steel have remarkably rebounded from the pandemic slump, reaching, and in some cases, surpassing pre-Covid revenue levels. Meanwhile, the fertilizer and oil sectors have navigated volatile margins while maintaining their ratings, supported by strategic government ties.

(With inputs from agencies.)