Corporate debt levels: Indian companies’ debt growth slows to 2.9% in FY25; firms turn inwards for funds

Jun 26, 2025 - 23:00
Corporate debt levels: Indian companies’ debt growth slows to 2.9% in FY25; firms turn inwards for funds

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A Bank of Baroda report indicates Indian companies are increasingly funding growth internally. Corporate debt growth slowed to a 2.9% CAGR between FY21-FY25, a significant drop from the previous five years. While investment in fixed assets remained strong, firms are relying more on retained profits.

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