As the report states, “We expect India’s steady GDP growth outlook, the banking sector’s improved financial health and likely interest-rate cuts in 2025 to support overall credit access for corporates in FY26.” Considering how a corporate in India is speculated to obtain improved credit metrics within FY26, the place can be considered as ideal for businesses to grow, especially if the depreciation of the Indian rupee persists alongside high relocation costs that are incurred while doing businesses.

As broad expectations continue to suggest the state bank of India would reduce interest rates in the year 2025, investment within the corporates will be encouraged throughout the economy, especially because of the fact how India has relatively high capital expenditure. It can be assumed that will simultaneously strengthen the economy moving forward.

Fitch assesses that aggregate sales growth for Fitch-rated corporates will be only modestly higher than in FY25, gaining by 1-2 percent in FY26, with oil and gas upstream, refining and marketing firms taking the brunt of the aforementioned price bias. Other areas will experience diverse development however. Sales will decline in low-single digits for the oil and gas production and oil marketing companies (OMC) as lower prices eat into a low-to-mid single-digit volume growth. According to Fitch, only a mid-single-digit sales growth is expected for IT service businesses since key overseas markets have poor economic growth prospects, hence Postal and Telecom Workers Union compels them to exercise restraint on discretionary spending. In its statement he said, “Looking ahead, we expect strong cement and electricity demand, oil products, steel, engineering and construction (E&C) companies to support India’s 6.5% gdp growth goal alongside substantial infrastructure spending.”

According to Fitch, sales growth for auto suppliers will drop to mid-single digits due to dampened volume growth in the domestic market and reduced exports. The travel and tourism industry is gradually recovering, albeit at a slow rate. Oversupply in the world market will further reduce the prices for chemical firms. Revenue growth in the telecommunications sector will be boosted by telecommunication tariff hikes. Revenue growth of the pharmaceutical industry will continue to be enabled by its non-cyclical nature while trend remaining supportive in the sector, Fitch added.