S&P projects 12-14% credit growth this fiscal, warns weak monsoon may hit rural lending

S&P Global forecasts a 12-14% increase in financial sector lending despite potential slowdowns in rural areas. Concerns about weak monsoon rains may negatively impact rural incomes and lending. A projected GDP growth of 7% for India in FY27 reflects steady public investment and improved private sector investments. Economic activity remains strong, although headwinds like inflation could constrain momentum.