NEW DELHI– Corporate India is projected to record 8 percent revenue growth this fiscal year, supported by strong domestic consumption and sustained government infrastructure spending, even as U.S. tariff actions weigh on export-driven industries, according to a Crisil report released Tuesday.
The report noted that corporate credit quality remains resilient, with EBITDA margins expected to hold steady at around 12 percent. “Rationalization of GST rates, income tax relief, lower inflation, and reduced interest costs are set to boost consumption. Meanwhile, consistent government capex and robust domestic demand will underpin credit quality for infrastructure and consumption-linked sectors,” said Somasekhar Vemuri, senior director at Crisil Ratings.
Vemuri added that leverage levels across corporate balance sheets remain near decade lows, providing maneuverability if global headwinds intensify. While export-oriented sectors face pressure, positive trade negotiations with economies like the U.S. and European Union, along with supportive domestic policies, could help mitigate risks.
The outlook for banks and non-banks remains steady. Bank credit is expected to grow 11–12 percent, slightly higher than last year, while non-bank assets under management (AUM) are likely to maintain last fiscal’s strong 18 percent growth. Lower interest rates and tax relief are expected to spur credit expansion in the second half of the year.
Sector-specific momentum remains strong. The construction sector will benefit from diversified order books across roads, irrigation, water, and power. Infrastructure assets such as renewable energy, roads, commercial real estate, and data centers are supported by stable cash flows. Hospitality is poised to gain from surging leisure and business travel demand, while the FMCG sector will see steady growth aided by easing inflation, premiumization, and stronger profitability.
However, tariff pressures from the U.S. — which accounts for 20 percent of India’s merchandise exports — will hit certain export-oriented sectors. The diamond industry faces margin pressure as tariffs and competition from lab-grown diamonds hurt demand, while shrimp exporters are set to see revenue declines despite early orders in the first half of the fiscal. (Source: IANS)
