India collects payments faster than China, Singapore: What working capital data shows
India’s average payment collection period fell to 56 days in 2025, marking the biggest improvement in days receivable across Asia Pacific, according to Aon. The figure was significantly lower than China’s 99 days, Singapore’s 73 days and Hong Kong’s 76 days.
- Aug 27, 2026,
- Updated Aug 27, 2026 5:45 PM IST
Indian businesses are collecting payments significantly faster than several major Asian markets, with average days receivable falling to 56 days in 2025, according to Aon’s 2026 Working Capital Benchmarking Report. The figure was 43 days lower than China’s and 17 days below Singapore’s, highlighting a sharp improvement in India’s working capital performance.
India’s payment cycle improves
The report, which analysed audited financial data from 3,805 publicly listed companies across 14 Asia Pacific markets and 21 industries, found that India recorded the largest year-on-year reduction in days receivable in APAC. The average collection period declined by eight days to 56 days in 2025.
Days receivable measures the average time a company takes to collect payment after delivering goods or services. A shorter collection cycle can help companies improve liquidity, strengthen balance sheets and deploy cash more efficiently.
India’s 56-day average was well below the APAC average of 79 days. It also compared favourably with China at 99 days, Hong Kong at 76 days and Singapore at 73 days.
However, India was not the fastest market in the region. New Zealand recorded the shortest collection period at 41 days, followed by Vietnam at 45 days and Australia at 48 days.
What is driving the improvement?
The improvement was particularly pronounced across several Indian industries. Engineering and construction recorded the biggest reduction in the region, cutting days receivable by 28 days, from 125 days in 2024 to 97 days in 2025.
The chemicals sector reduced its collection period by 24 days to 67 days, while construction materials and pharmaceuticals each improved by 13 days. Electrical products and information technology recorded reductions of 11 days and nine days, respectively.
For businesses, faster collections can mean less capital tied up in unpaid invoices and greater flexibility in managing operating expenses, investments and growth.
“India’s progress shows the opportunity for businesses to release more cash from their operations and put it toward growth,” said Sushant Sarin, Managing Director and Head of Commercial Risk Solutions, India, Aon.
Sarin said benchmarking receivables performance against industry peers can help CFOs and treasurers identify where capital remains tied up and support decisions aimed at improving financial flexibility and resilience.
Can Indian companies unlock more working capital?
While India’s performance has improved, Aon sees scope for businesses to further strengthen their working capital position.
Steve Taylor, Deputy Global and Asia Head of Credit Solutions at Aon, said companies could combine stronger receivables management with financing tools.
“Businesses can build on these results by combining stronger receivables management with tools such as credit insurance-backed financing,” Taylor said.
He added that the combination can help businesses unlock working capital and create greater flexibility as they navigate a more complex operating environment.
With the APAC average remaining unchanged at 79 days, India’s eight-day improvement stands out. The data suggests that Indian companies have made meaningful progress in converting sales into cash, although faster-moving markets show there is still room to improve.
Indian businesses are collecting payments significantly faster than several major Asian markets, with average days receivable falling to 56 days in 2025, according to Aon’s 2026 Working Capital Benchmarking Report. The figure was 43 days lower than China’s and 17 days below Singapore’s, highlighting a sharp improvement in India’s working capital performance.
India’s payment cycle improves
The report, which analysed audited financial data from 3,805 publicly listed companies across 14 Asia Pacific markets and 21 industries, found that India recorded the largest year-on-year reduction in days receivable in APAC. The average collection period declined by eight days to 56 days in 2025.
Days receivable measures the average time a company takes to collect payment after delivering goods or services. A shorter collection cycle can help companies improve liquidity, strengthen balance sheets and deploy cash more efficiently.
India’s 56-day average was well below the APAC average of 79 days. It also compared favourably with China at 99 days, Hong Kong at 76 days and Singapore at 73 days.
However, India was not the fastest market in the region. New Zealand recorded the shortest collection period at 41 days, followed by Vietnam at 45 days and Australia at 48 days.
What is driving the improvement?
The improvement was particularly pronounced across several Indian industries. Engineering and construction recorded the biggest reduction in the region, cutting days receivable by 28 days, from 125 days in 2024 to 97 days in 2025.
The chemicals sector reduced its collection period by 24 days to 67 days, while construction materials and pharmaceuticals each improved by 13 days. Electrical products and information technology recorded reductions of 11 days and nine days, respectively.
For businesses, faster collections can mean less capital tied up in unpaid invoices and greater flexibility in managing operating expenses, investments and growth.
“India’s progress shows the opportunity for businesses to release more cash from their operations and put it toward growth,” said Sushant Sarin, Managing Director and Head of Commercial Risk Solutions, India, Aon.
Sarin said benchmarking receivables performance against industry peers can help CFOs and treasurers identify where capital remains tied up and support decisions aimed at improving financial flexibility and resilience.
Can Indian companies unlock more working capital?
While India’s performance has improved, Aon sees scope for businesses to further strengthen their working capital position.
Steve Taylor, Deputy Global and Asia Head of Credit Solutions at Aon, said companies could combine stronger receivables management with financing tools.
“Businesses can build on these results by combining stronger receivables management with tools such as credit insurance-backed financing,” Taylor said.
He added that the combination can help businesses unlock working capital and create greater flexibility as they navigate a more complex operating environment.
With the APAC average remaining unchanged at 79 days, India’s eight-day improvement stands out. The data suggests that Indian companies have made meaningful progress in converting sales into cash, although faster-moving markets show there is still room to improve.