Easing burden: Amount borrowed by non-financial firms fell 5.6% in FY21

The numbers also suggest a big jump in India Inc's cash pile or cash reserves

The boom in corporate profits and a sharp fall in capex allowed India Inc to ease its debt burden last financial year. The combined borrowing by the top listed companies, excluding banks, insurance, and non-banking financial companies (NBFCs), were down 5.6 per cent year-on-year to Rs 30.8 trillion at the end of FY21 from Rs 32.7 trillion.

It is the first decline in actual corporate borrowings in nearly two decades as loan repayments by companies exceeded fresh borrowings.

"The jump in corporate profits and cash flows, especially for commodity producers, accelerated the process of corporate deleveraging that started with a cut in