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Andy Mukherjee

How Can India Inc. Get Over Its Financing Hump?

It’s a three-part puzzle. The answer may lie in general elections starting next month.

They’re coming.

They’re coming.

Photographer: Prashanth Vishwanathan/Bloomberg

India’s corporate funding market is what Winston Churchill might have described as a riddle, wrapped in a mystery, inside an enigma.

The riddle, according to India Ratings and Research Pvt., a unit of Fitch Ratings Inc., is that borrowers’ credit metrics aren’t likely to worsen from here. And yet in the financial year starting April 1, their borrowing costs may rise even if the central bank cuts policy rates further.