Mumbai: Caution seems to be the overriding sentiment for India Inc, with a number of corporate houses scaling down plans and trying to peep into the crystal ball to try and figure out exactly how long the economic woes will last.

Reports in the media have suggested that some of the biggest industrial houses in India have started bracing for impending rough economic conditions. The Economic Times reported that the Aditya Birla Group is seeking options of closing down a Canadian unit. It also quoted Tata Group chairman Ratan Tata as having asked business heads of the group to ease up on investments and capital expenditures.

The Hindu Business Line also reported that Tata Group chairman Ratan Tata had written to the heads of group companies to get as much cash as possible, by finalising pending loans and funding agreements, even if they come at a higher cost of borrowing. 

Reports said Mahindra & Mahindra (M&M) was also relooking at its business plans for the current fiscal. 

Amongst others, Azim Premji's software giant Wipro is reported to have asked business heads to prepare for tough times and hard decisions, while steel maker JSW is also reported to have put off its multi-billion dollar expansion plans. 

Ostensibly, the credit crunch, and the slowing demand is making large industrial houses trim expenses, hold off acquisitions and expansion plans, and scale down their frenzied activities that had come to be the norm. 

The business groups say major hurdles in accessing credit in India could be in the offing, mainly on account of a lack of liquidity in the domestic market and the inability of companies to effectively raise equity on account of the depressed stock market and the flight of investor confidence.