The Reserve Bank of India (RBI) has reported a slowdown in non-food credit growth, which rose by 10.2% year-on-year as of June 27, 2025, down from 13.8% in the corresponding period last year. The figures are based on data collected from 41 major scheduled commercial banks, representing about 95% of total non-food credit.
The RBI’s sectoral data indicates a broad-based moderation in credit expansion across key economic segments:
- Agriculture & Allied Activities: Credit growth slowed sharply to 6.8%, compared to 17.4% a year ago.
- Industry: Credit rose by 5.5%, down from 7.7%. However, sub-sectors like MSMEs, engineering, construction, and textiles showed improved performance.
- Services: Growth moderated to 9.6% from 15.1%, largely due to reduced lending to NBFCs, though segments like software and professional services remained strong.
- Personal Loans: Registered a 14.7% growth, down from 16.6%, with slower growth in vehicle loans, credit card dues, and other categories.
In a separate release, the RBI also reported positive momentum in India’s international trade in services:
- Exports (Receipts): Rose to USD 32.11 billion, up 12.0% year-on-year.
- Imports (Payments): Climbed to USD 15.90 billion, reflecting a 5.0% increase.
This growth continues a strong trend seen in earlier months:
- April 2025: USD 32.84 billion (+8.8% YoY)
- May 2025: USD 32.45 billion (+9.6% YoY)
The services trade boost was led by robust performance in IT, business, and financial services, which continue to drive India’s export earnings.
The increase in services imports, especially after a YoY decline in May, points to a revival in demand for foreign professional and technical services.
Both credit and trade data reflect mixed trends: moderation in domestic credit growth, particularly in agriculture and services, but resilience in India’s service exports, reinforcing the sector’s importance in the current economic landscape.