Mumbai, May 6 -- India recorded robust credit growth in the financial year 2025-26, reflecting strong domestic demand and improving economic confidence, according to a press release by the Ministry of Finance. Non-food credit grew 15.9% year-on-year, up sharply by 497 basis points from 10.9% in the previous year.

Total outstanding credit reached Rs.212.9 lakh crore in March 2026, an increase of Rs.29.2 lakh crore compared to last year. The growth was supported by a low-interest rate environment, government-led capital expenditure, and structural reforms that encouraged private investment.

Sector-wise, growth was broad-based. The services sector led with a 19.0% rise, up from 12.0% a year ago, driven by strong demand from NBFCs, trade, a...