Mumbai (Maharashtra) [India], September 22 (ANI): Bank credit to micro and small industries grew 32.7 per cent in FY2026, significantly outpacing the overall growth in non-food bank credit, according to a report by Rubix Data Sciences.
Non-food bank credit expanded 15.9 per cent during the financial year, with lending to the services sector growing 19 per cent, the company's Rubix Country Insights: India – September 2026 report said.
The sharp growth in credit to micro and small industries comes against the backdrop of stronger domestic economic activity. India's provisional real gross domestic product (GDP) growth accelerated to 7.8 per cent year-on-year in the first quarter of FY2027, compared with 6.9 per cent in the corresponding quarter of the previous year, the report said.
Commenting on the broader economic environment, Tushar Bhaskar, President, Rubix Data Sciences, said, “A 7.8% quarterly growth rate, recorded amid open conflict in West Asia, is a strong indication of the resilience the Indian economy has built.”
The report also pointed to higher foreign direct investment inflows as another indicator of economic activity. FDI inflows rose 17 per cent to USD 94.5 billion in FY2026, while gross FDI of USD 30.7 billion in the first quarter of FY2027 was the highest quarterly inflow in 15 years, according to Rubix.
Bhaskar said diversification across key areas had helped strengthen the economy's ability to deal with external disruptions.
“Greater diversification in energy sourcing, trade and capital markets over the past few years has helped strengthen that resilience. But the external risks remain significant,” he said.
The report identified geopolitical tensions and trade restrictions among the key risks to the outlook. It said a prolonged conflict in West Asia could increase energy costs and put pressure on exporters.
“The fundamentals remain strong, but the next few quarters will test how effectively India can manage these external pressures,” Bhaskar added.
Rubix said India's growth outlook remains supported by domestic demand, infrastructure investment and fiscal consolidation, even as uncertainty in the external environment remains elevated. (ANI)
Bank credit to micro and small industries grows 32.7% in FY26, outpaces overall bank lending: Report
