India Industrial Credit Surges 20% in July 2026

Bank credit extended to the industry in India accelerated significantly in July 2026, recording a 20% year-on-year growth. This marks a substantial increase from the 6.5% growth observed in the same period a year earlier, according to data released by the Reserve Bank of India (RBI).

This surge in industrial credit was complemented by a sharp acceleration in credit to the services sector and agriculture, contributing to a robust overall bank credit expansion.

Key Credit Growth Figures (July 2026)

• Industrial Credit: 20% (up from 6.5% a year prior)
• Services Credit: 22.9% (up from 10.2% a year prior)
• Agriculture and Allied Activities Credit: 17% (up from 7.3% a year prior)
• Overall Bank Credit Growth: 19.3% (as of July 31, 2026)

The acceleration in industrial credit proved widespread, benefiting industries of all sizes. Micro and small industries, medium industries, and large industries all experienced significant growth in their credit uptake.

Industrial Credit Expansion Across Segments

• Micro and Small Industries: 22.6% growth
• Medium Industries: 30.5% growth
• Large Industries: 17.7% growth
• Engineering Credit: 36.2% (with non-electronics at 40.1% and electronics at 22.8%)
• Gems and Jewellery: 35.7% growth
• Petroleum, Coal Products, and Nuclear Fuels: 34% growth
• Vehicles, Vehicle Parts, and Transport Equipment: 32.2% growth
• Chemicals and Chemical Products: 24% growth
• Basic Metals and Metal Products: 21.9% growth
• Construction: 24.4% growth
• Food Processing: 22.3% growth
• Textiles: 15.1% growth

However, infrastructure credit demonstrated a slower growth rate, with some sub-segments even contracting. Retail loan growth also showed moderation in specific categories, even as others expanded.

Key Infrastructure & Retail Loan Trends

• Infrastructure Credit: 10.2% growth
• Roads: -0.8% decline
• Telecommunications: -13.2% contraction
• Ports: 58.4% growth
• Power: 21.6% growth
• Credit Card Outstanding: 2.3% growth (down from 5.6%)
• Education Loans: 13.7% growth (down from 15%)
• Advances Against Fixed Deposits: 14.6% growth
• Vehicle Loans: 18.8% growth
• Housing Credit: 11.3% growth
• Consumer Durable Loans: 0.4% growth (an improvement from previous contraction)

The services sector played a crucial role in overall credit expansion, showing a robust acceleration. This was driven by multiple key sub-sectors, indicating broad-based demand for financing.

Services Sector Drives Credit Demand

• Computer Software: 43.3% growth
• Lending to Non-Banking Financial Companies (NBFCs): 35.7% growth
• Tourism, Hotels and Restaurants: 27.1% growth
• Shipping: 25.9% growth
• Aviation: 23.8% growth
• Commercial Real Estate: 21.5% growth
• Trade: 19.8% growth (Wholesale Trade at 25.7%, Retail Trade at 13%)

This widespread credit expansion, including a notable 107.9% increase in food credit, contributed to the 19.3% overall bank credit growth by July 31, 2026. The RBI data encompasses scheduled commercial banks, which collectively account for approximately 95% of India’s total non-food credit.

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