India's industrial credit growth picked up, stood above its CAGR over last 10-year period in H1FY27

Reserve Bank of India has stated in its latest monthly update that India's industrial credit growth picked up and it was above its compounded annual growth rate (CAGR) over the last 10-year period in H1:2026-27, supporting overall credit expansion. Services and personal loans continued to drive overall credit growth. Credit to industrial sector registered robust growth during H1:2026-27, largely attributable to a sharp acceleration in credit to large industries. This was supported partly by corporates? reduced recourse to market-based funding as its cost was higher on account of heightened geopolitical tensions. Credit to MSMEs continued on its double-digit growth trajectory, reflecting resilient credit demand including increased working capital requirements amidst global uncertainties and continued policy support. The policy support measures comprise the enhanced guarantee limit under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme, Emergency Credit Line Guarantee Scheme (ECLGS) 5.0, among others.

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