Indian corporates need Rs 120 lakh cr debt by FY30 for Capex and working capital: Crisil

The report highlighted that around Rs 45-50 lakh crore of this debt will be required for capital expenditure, while the remaining Rs 70-75 lakh crore will be used by NBFCs and for meeting working capital requirements.

It said "Corporate India will need to raise approx. Rs 115-125 lakh crore of debt between fiscals 2026 and 2030 to meet private and public sector capex".

The infrastructure sector is expected to play a key role in driving capex, accounting for nearly three-fourths of the total investment in this period. It is also projected to contribute about 55 per cent of the overall debt requirement through FY30.

Crisil noted that corporate India's leverage is at its lowest level in a decade, and the credit profiles of infrastructure assets have improved. These factors create a favorable environment for continued investment in infrastructure and other sectors.

On the funding side, India's overall financing ecosystem, which includes banks, the corporate bond market, and external commercial borrowings (ECBs), is expected to grow at a moderate pace of 10% annually until FY30.

However, this rate of growth may not be sufficient to meet the rising debt requirements, potentially leading to a funding gap of Rs 10-20 lakh crore.

To bridge this gap, the report mentioned that the corporate bond market can play a bigger role if supported by appropriate regulatory and policy measures. Strengthening the bond market would help reduce dependence on bank loans and ensure a steady flow of capital for infrastructure and other sectors.

It said "the corporate bond market has the potential to step up its funding contribution and help bridge this gap"

With India's ongoing push for infrastructure development and the improving financial health of corporates, sustained policy support and diversified funding sources will be crucial in meeting the country's investment needs over the next five years. (ANI)