Indian companies are demonstrating remarkable efficiency in payment collection, with the average period for receiving payments falling to just 56 days in 2025. This significant improvement places India ahead of major Asian economies like China, which averages 99 days, and Singapore at 73 days, according to the latest Aon 2026 Working Capital Benchmarking Report.
The report, which analyzed audited financial data from 3,805 publicly listed companies across 14 Asia Pacific markets and 21 industries, highlighted India's eight-day reduction in days receivable as the most substantial year-on-year improvement in the APAC region. Days receivable is a critical metric measuring the average time a company takes to collect payment after delivering goods or services. A shorter collection cycle directly enhances liquidity, strengthens balance sheets, and allows for more efficient cash deployment.
India's 56-day average also compares favorably to the overall APAC average of 79 days and Hong Kong's 76 days. While India has made considerable strides, it is not the fastest in the region; New Zealand leads with 41 days, followed by Vietnam at 45 days, and Australia at 48 days.
What's Driving the Improvement?
The positive shift in India's payment collection landscape is largely attributed to improvements across several key industries. The engineering and construction sector recorded the most significant reduction, cutting days receivable by 28 days to 97 days in 2025 from 125 days in 2024. The chemicals sector saw a 24-day improvement, bringing its collection period to 67 days.
Other sectors contributing to this trend include construction materials and pharmaceuticals, both improving by 13 days, and electrical products and information technology, with reductions of 11 days and nine days, respectively. Faster collections mean less capital is tied up in outstanding invoices, providing businesses greater flexibility to manage operational expenses, investments, and drive growth.
Sushant Sarin, Managing Director and Head of Commercial Risk Solutions, India, Aon, emphasized, "India’s progress shows the opportunity for businesses to release more cash from their operations and put it toward growth." He added that benchmarking receivables performance against industry peers can help CFOs and treasurers identify where capital remains tied up, supporting decisions aimed at improving financial flexibility and resilience.
Unlocking More Working Capital
Despite the notable advancements, Aon believes there is still considerable scope for Indian businesses to further strengthen their working capital position. Steve Taylor, Deputy Global and Asia Head of Credit Solutions at Aon, suggested that companies could build on these results by combining stronger receivables management with strategic financing tools.
"Businesses can build on these results by combining stronger receivables management with tools such as credit insurance-backed financing," Taylor stated. This integrated approach, he noted, can help unlock additional working capital and create greater flexibility for companies navigating an increasingly complex operating environment. India’s eight-day improvement stands out against an unchanged APAC average of 79 days, signaling meaningful progress, yet the performance of faster-moving markets indicates further potential for enhancement.