The Indian debt and bond market situation remains resilient due to deleveraged corporate balance sheets, even as external shocks and global geopolitical uncertainties continue to pose supply chain and export disruptions, according to Managing Director and Group CEO at CareEdge Group, Mehul Pandya.
Speaking to ANI at the sidelines of CareEdge Debt Market Summit 2026, Pandya noted that the domestic corporate landscape shows greater strength compared to previous crisis cycles. The current position prevents widespread financial stress despite ongoing global friction.
“The overall debt market situation in the country, because of the deleveraged corporate balance sheets, we are not at a stage where say 7-8 years back we were, that any volatility in the cash flows that could have actually led to a significantly large number of defaults and stresses on the bank’s balance sheet. So we are in a slightly better situation as compared to that. Having said that, what is playing out in terms of the current volatility and now it is impacting on both the sides,” Pandya said.
He highlighted that the ongoing crisis in West Asia impacted both export-driven sectors and domestic supply chains. While recent global announcements offered some hope for stabilization, the time required for complete normalization introduces a period of persistent economic uncertainty.
“Not only are the export driven sectors impacted because of the disruptions as far as their finished products are concerned, but at the same time, the supply chains of the other players are also getting disrupted because of this entire situation. So from that perspective how soon these things will be getting reinstated to some semblance of normalcy that remains to be seen,” Pandya said.
He said that the pronouncements which came earlier in the week, “if it actually fructifies to the way in which they have been positioned, I think that would be good, but that would still leave out the question in terms of how soon the supply chains and the export markets get reinstated.”
Pandya mentioned that even if today, the hostilities cease, the world will not be stable immediately. “We would be having some period of where the uncertainties would still be there,” Pandya added.
The MD stated that CareEdge witnessed a moderation in its credit ratio, measuring upgrades to downgrades, during the second half of the fiscal year 2026. This period included only one month of direct disruption, making the first quarter of the current financial year critical for assessing long-term debt servicing capabilities and funding patterns.
Pandya mentioned that CareEdge projects India’s full-year GDP growth for the fiscal year 2026-27 at around 6.7 per cent, conditional on international crude oil prices averaging USD 98 per barrel. Continued hostilities or a weaker monsoon could trigger inflationary pressures, leading to elevated borrowing costs for corporates and capping medium-term growth potential. (ANI)
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