The central financial institution said that “the Indian economic system stays a key driver of world development, underpinned by sound macroeconomic fundamentals and prudent macroeconomic insurance policies.”

The RBI warned that international monetary markets are witnessing heightened volatility, notably in core authorities bond markets, amid financial and commerce coverage uncertainty. Structural vulnerabilities corresponding to elevated public debt and inflated asset costs could amplify the consequences of potential shocks, the report famous.

Home Monetary Well being Stays Sturdy

India’s monetary establishments have remained regular by way of turbulent situations, supported by robust steadiness sheets and low volatility in monetary markets. In keeping with the RBI, each banks and non-banking monetary corporations (NBFCs) are on strong footing. “Monetary situations have eased, supported by accommodative financial coverage and low volatility in monetary markets,” the report stated.

The report highlighted the resilience of scheduled business banks (SCBs), citing “strong capital buffers, multi-decadal low non-performing loans ratio and powerful earnings.” Stress take a look at outcomes confirmed that the majority SCBs are adequately capitalised even beneath antagonistic eventualities. Mutual funds and clearing companies have additionally handed resilience assessments.

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Sectoral Credit score Developments Reveal Moderation

The RBI additionally launched information on sectoral credit score deployment as of Could 30, 2025. Financial institution credit score to trade rose by 4.9 per cent year-on-year, down from 8.9 per cent in the identical interval final yr. Credit score development to sectors like engineering, building, and rubber and plastic merchandise confirmed momentum.

In distinction, credit score to agriculture and allied sectors grew at 7.5 per cent, a pointy slowdown from 21.6 per cent a yr earlier. Credit score to the providers sector additionally decelerated to 9.4 per cent from 20.7 per cent, primarily as a consequence of decreased lending to NBFCs. Nonetheless, lending to the pc software program section remained robust.

Private mortgage development, one other key driver, rose 13.7 per cent, in contrast with 19.3 per cent in the identical interval final yr, as borrowing for automobiles, bank cards, and different private makes use of cooled.