New Delhi, Jan. 29 -- The Economic Survey for FY25-26, tabled in Parliament on Thursday, said India's commercial sector is increasingly tapping alternative financing to offset a moderation in bank credit. Faster monetary policy transmission has made market-based instruments a viable alternative for large corporations, it said, adding that rising profitability has allowed firms to leverage internal resources for expansion, collectively reducing their traditional reliance on bank lending.

Over April-November 2025, within the overall flow of financial resources, there was a significant increase in the flow from non-bank sources, which rose by 29.3% year-on-year, against 18.3% growth in non-food bank credit. "A concurrent increase in the flo...