Corporate India holds steady in 2025-26, thanks to local demand
Corporate India is holding steady in 2025-26, with healthy credit ratings thanks to solid local demand and government spending.
Even though the US slapped a hefty 50% tariff on some Indian exports—like seafood, gems, textiles—most companies have not seen their ratings affected, according to rating agencies.
More upgrades than downgrades
So far this year, rating agencies like ICRA and Crisil have upgraded way more companies than they've downgraded.
Only about 20 firms had rating actions (mostly outlook changes) related to the US tariff situation, out of thousands reviewed, showing most businesses are weathering the storm.
Banks keep risk low
Banks have kept their risk low—less than 1% of their loans go to sectors hit by US tariffs.
This has helped them keep things stable even as MSMEs and unsecured loans face challenges.
Credit growth is expected to stay healthy at around 11-13% this year, driven by steady business demand and government support.