India Inc is projected to hike salaries by an average 9.1 per cent in 2026, which is slightly higher than the actual 8.9 per cent increase recorded in 2025, as per a new report by Aon plc.This reflects sustained salary increase on the back of positive medium-term outlook amidst geopolitical uncertainty.Real estate & infrastructure (10.2 per cent) and non-banking financial companies ( 10.1 per cent) are expected to deliver highest salary growth in 2026. Automotive and vehicle manufacturing (9.9 per cent ), e ...

Core Insights - The total flow of financial resources to the corporate sector increased to ₹35 lakh crore in FY25, reflecting a 3% rise from the previous year, but indicating a shift away from traditional bank credit, which suggests a broader economic slowdown [1][10] Funding Composition - Nearly 49% of the total resources raised, amounting to ₹17.1 lakh crore, came from non-bank channels, including corporate bonds, NBFC loans, equity issuances, and foreign direct investment [2][10] - Demand for bank credit declined by 14% to ₹17.9 lakh crore, highlighting a significant shift in funding sources [10] Equity Market Performance - Non-financial corporates raised ₹3.8 lakh crore through equity in FY25, marking a substantial increase of 188% compared to the previous year, driven by strong equity market performance [2][10] Lending Trends - The slowdown in bank credit may be attributed to cautious lending practices towards NBFCs and unsecured retail segments, as well as a high base effect from FY24 when bank credit surged by 20% [6][10] - NBFCs and financial institutions increased their lending to corporates, disbursing ₹6.1 lakh crore, which is a 20% rise [6][10] - Borrowings through corporate bonds and commercial papers by non-bank entities rose by 15% to ₹2.1 lakh crore [6][10] Internal Funding Sources - The increased use of internal accruals for business expansion has contributed to the decline in bank credit, as profitability among large corporates has improved [8][10] Policy Response - To stimulate credit demand, the Reserve Bank of India (RBI) has reduced policy rates by 100 basis points since February, following a two-year pause, and ensured ample liquidity in the banking system [9][10]