
Summary:
Fitch Ratings predicts that India’s stable GDP growth, better banking health, and expected interest rate cuts in 2025 will help corporates access credit in FY26. The credit outlook for Indian companies is expected to improve with higher profit margins despite high spending. However, risks like energy price hikes, geopolitical tensions, rupee depreciation, and trade protectionism could impact exports.
Fitch predicts sales growth for corporates in India will stay low at 1-2% in FY26, mainly due to falling oil and gas prices. However, sectors like cement, steel, electricity, and construction will see higher demand driven by India’s expected 6.5% GDP growth and strong infrastructure spending. IT services and telecom will grow, while oil, gas, auto, and tourism will face slower growth, with some sectors benefiting from price hikes and stable demand.
Source: IBEF
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