Corporate India: Battle-Tested, Lean, and Ready for the Next Growth Cycle

After a tough post-2008 period, Corporate India has emerged stronger and more resilient.

-Debt-to-equity ratios have declined sharply, and we now have one of the lowest corporate debt-to-GDP ratios among major economies.
-Between FY21 and FY25, corporate debt grew at just 2.9% CAGR, a sharp slowdown from the 8.7% CAGR in FY15–20.
– Despite lower debt growth, fixed asset investments have remained robust—a clear shift toward capex funded by internal accruals rather than leverage.

This signals a structural transformation. The scars of the past have reshaped balance sheets:
– Companies are leaner,
– Cash flows are stronger,
– And risk-taking is far more disciplined.

Today, with ample equity availability (thanks to buoyant capital markets) and strong lending capacity in the banking system, Corporate India is not just positioned for growth—it has earned it.

This isn’t luck.
It’s strategy.
It’s design.
And the runway ahead is long

Source: Mihir Vora, Chief Investment Officer at TRUST Mutual Fund