Reliance to SAIL: India Inc on deleveraging spree as economy slows down

Companies don't want debt-fueled growth, seek prudence as banks crack the whip.

India’s top companies are deleveraging by cutting debt, with Reliance Industries leading the pack. The company made a debt cut of Rs 85,000 crore in fiscal 2021.

Opting for lower-cost loans, aggressive asset sales and avoiding new projects were methods Corporate India had adopted to check debt.

Statistics collated by 'Business Standard' shows that state-owned SAIL was the topper in debt reduction in percentage terms at 30.5 per cent. Jindal Steel, which reduced its debt by 29.7 per cent, was next (see chart).  

Analysts said Indian companies don’t want debt-fueled growth, considering the economy is slowing down and banks are