GDP growth, likely rate cuts in 2025 to support credit access of corporates in FY26
India's GDP growth, healthier banking sector, and potential interest-rate cuts in 2025 are set to enhance corporate credit access in FY26. While sectors like cement, electricity, and telecom expect robust sales, oil, gas, IT, and auto suppliers could see moderate growth amidst fluctuating prices and geopolitical risks.
Fitch Ratings on Monday said India's steady GDP growth outlook, improved banking sector's financial health and expected interest-rate cuts in 2025 will support credit access for corporates in FY26. The credit metrics of rated Indian corporates is expected to improve in the next financial year (April 2025-March 2026) driven by wider EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margins, despite high capex intensity.
|