Monsoon Recovery and Credit Expansion Support India's 2026 Outlook

The monsoon season showed a modest improvement, with July rainfall about 1% above normal, narrowing the June‑July deficit to roughly 13% below the historic average. Credit growth accelerated to an annualised 18.6%, pushing total loan book to ₹219.3 trillion by June. These factors, together with stable FPI net buying, have helped sustain a robust macro‑economic environment even as external pressures linger.