On the auspicious occasion of India’s 80th Independence Day, the country’s economic story remains one of resilience, with domestic demand and growth continuing to provide strength despite elevated global uncertainties.
India’s growth outlook remains robust, with the latest Nowcasting model projecting real GDP growth at 8% in the first quarter of FY27.
Credit demand is also gaining momentum. Bank credit grew 19.3% year-on-year in the fortnight ended 31 July 2026, while deposit growth accelerated to 15.4%, supported in part by strong inflows under the FCNR(B) scheme.
By 13 August, around $52.3 billion had been mobilised through FCNR(B) deposits. Despite the scheme’s one-month shorter window, total mobilisation is expected to reach $65–70 billion. Including overseas foreign currency bonds (OFCBs) and external commercial borrowings (ECBs), total mobilisation could rise to $80–85 billion.
The Reserve Bank of India has already recouped around $31 billion in foreign currency assets as of 7 August, equivalent to nearly 55% of the funds mobilised.
The increase in bank deposits and foreign-currency funding could also help ease pressure on government bond yields. The 3–7-year segment is expected to benefit most from maturity matching, carry and lower supply pressure, followed by the 7–10-year segment.
Foreign institutional investor flows have also shown signs of reversing, moving from earlier outflows towards inflows after measures announced by the RBI and the government.
Corporate performance remains supportive. Among 2,257 listed non-BFSI companies, Q1 FY27 net sales rose 24% year-on-year, while EBITDA increased 9% and profit after tax grew 4%.
The monsoon outlook has improved too, with the nationwide rainfall deficit narrowing to around 13%. Kharif sowing is just 2% below last year, signalling improving agricultural conditions.
