The 2024 Payment Practices Barometer survey for India was conducted during Q3 2024, and findings should therefore be viewed with this in mind.

Key takeaways from the report for India  

Indian businesses focus on financial health as B2B late payments worsen

• Inside a complex picture of current B2B payment trends there is concerning negative shift found in in our survey of companies across India. 50% of businesses, particularly in the chemicals and textile/clothing sectors, say that the payment practices of their B2B customers has deteriorated during the past year. This is leading to cashflow disruptions and financial distress.
   
• To reduce the risk of a potential cash crunch caused by late payments, most companies across India use the strategy of slowing down payments to their own suppliers, even with the risk of a domino effect through industries. 74% of businesses tell us they rely on bank credit to bridge temporary liquidity gaps, while others look to invoice discounting.

Mounting worry about insolvency risk among Indian companies

• Our survey finds a very different mood concerning the outlook for insolvency risk. There is widespread anxiety that insolvencies among B2B credit customers may increase during the year ahead. This is anticipated by 71% of Indian companies, primarily in the chemicals industry, due to an uncertain economic  landscape, cashflow problems, regulatory changes and supply chain disruptions. 
   
• The uncertain economic climate which is fuelling worries about insolvency risk is a major preoccupation looking ahead for Indian businesses. 51% of companies express significant apprehension for the both the short-term and long-term, particularly in the textile/clothing sector.

The Atradius Payment Practices Barometer is an annual survey of business-to-business (B2B) payment practices in markets across the world. Its findings can give valuable  insights into the current dynamics of corporate payment behaviour in B2B trade. It can also help companies doing business, or planning to do so, in the markets polled to identify emerging future trends in the payment practices of B2B customers. 

Interested in finding out more?

For a complete overview of the 2024 survey results for India, please download the full report available in the related documents section below. The regional report for Asia is also available for download in the section below.

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