India’s banking sector registered robust credit growth of 15.9 per cent in the financial year 2025-26, driven by strong demand across agriculture, industry, services and retail lending segments, according to the Union Ministry of Finance.
Specifics on FDI limits in sectors like defence or manufacturing remain broad, with no immediate changes announced. Implementation timelines are unclear, but the government aims to roll out these reforms swiftly to capitalise on global shifts in investment patterns.
As the World Bank has highlighted, maintaining upper-middle status requires not just recovery momentum but deep structural reforms to drive sustainable, inclusive growth.