Book

Industrial competitiveness in emerging economies increasingly depends on the delicate balance between financial leverage, institutional strength, and post-pandemic recovery dynamics. Financial Sustainability of Indian Manufacturing provides a rigorous empirical and conceptual examination of how capital structure decisions shape the long-term resilience of manufacturing firms operating in volatile financial environments. Using advanced dynamic panel modelling and firm-level evidence from the post-COVID period, the book develops the novel concept of financial sustainability corridors-threshold zones within which leverage enhances performance but beyond which nonlinear financial fragility begins to intensify. Moving beyond traditional static capital structure debates, the study integrates insights from trade-off theory, agency perspectives, and financial stability literature to construct a unified analytical framework relevant for both developed and emerging market contexts. The analysis demonstrates that the leverage-performance relationship in manufacturing firms is inherently nonlinear and institutionally conditioned. While prudent debt utilisation improves capital efficiency and growth capacity, excessive financial dependence elevates distress risk, weakens profitability persistence, and heightens sensitivity to macro-financial shocks. The book further shows how post-pandemic liquidity conditions temporarily obscured underlying structural vulnerabilities. Combining methodological rigour with policy relevance, this monograph will be of interest to scholars in corporate finance, banking, and industrial economics, as well as policymakers, financial institutions, and industry strategists concerned with sustainable industrial development. By situating firm behaviour within broader macro-financial and institutional frameworks, the book advances the emerging discourse on resilient industrial finance in the Global South.