Key Signals

• Resilient Manufacturing: The Manufacturing PMI remained consistently above 50, signaling continuous expansion, though momentum moderated from a peak of 59.3 in August to 53.9 in March.
• Surging Logistics Activity: E-way bill volumes showed robust double-digit growth throughout the year, peaking at 42.65% in January, indicating high velocity in internal trade.
• Robust Credit Demand: Bank credit growth accelerated in the second half of the year, reaching 13.8% by March, suggesting strong borrowing appetite.
• Stable Domestic Consumption: GST collections maintained positive growth; despite a dip to 0.7% in November, they recovered to end the fiscal year at a healthy 8.8%.
• High Industrial Capacity: Capacity utilization trended upward toward 74.8%, signaling that industries are approaching output levels that typically trigger new private capital expenditure.
• Moderate Power Demand: Growth in power demand was steady but fluctuating, suggesting a consistent yet non-aggressive industrial energy requirement.
• Banking Liquidity: Deposit growth remained healthy at 12% by year-end, providing the necessary liquidity to support the sustained credit expansion.

Tracks consumption strength, demand trends, and overall demand momentum across the economy.

Key Signals

• Logistics Velocity: The SP Freight Index hit 125 in March, paired with high E-way bill volumes (132Mn+), signaling high-velocity internal trade.
• Infrastructure Momentum: Commercial Vehicle sales surged to 28.9% YoY growth by February, reflecting a significant ramp-up in industrial and construction activity.
• Consumer Boom: Passenger Vehicle sales reached record highs, peaking at 513K units in January, indicating very strong discretionary spending.
• Fiscal Stability: GST collections recovered from mid-year volatility to close at ₹2 lakh crore, ensuring a strong revenue trajectory.
• Energy Uptick: Power consumption finished the year at 149.56 BU, suggesting a high-intensity end to the industrial fiscal year.

Tracks lending growth, deposits and borrowing costs to show how easily businesses and consumers can access credit and how supportive financial conditions are for economic activity.

Key Signals

• Rising Credit Demand: Bank credit growth reached 13.8% by March, signaling a strong appetite for capital in the economy.
• Cheaper Borrowing: Lending rates dropped from 9.77% to 8.44%, making debt more affordable and incentivizing expansion.
• Tighter Liquidity: The Credit-Deposit (CD) ratio climbed to 83%, indicating banks are lending out a larger portion of their available deposits.
• Robust Domestic Credit: Overall domestic credit growth peaked at 15% in February, reflecting high financial momentum.
• Stable Deposit Growth: Deposits grew by 12% by year-end, maintaining a steady funding base despite trailing credit expansion.

Shows how active the economy is by tracking production usage, goods movement, power consumption and vehicle sales.

Key Signals

• High Capacity Usage: Utilization stayed steady at 74.8%, signaling industries are operating near full output levels.
• Sustained Manufacturing Growth: PMI remained consistently above 50, though the pace of expansion slowed to 53.9 by March.
• Accelerating Industrial Production: IIP Manufacturing gained momentum toward the year-end, closing with solid 6% growth.
• Volatile Core Output: Core sector performance was inconsistent, peaking at 6.53% in August before stabilizing at 2.3% in March.
• Increasing Inventories: Total inventories rose to Rs 5.68 bn, reflecting steady supply-side accumulation to meet demand.

Shows whether financial risks in businesses and banks are increasing or declining.

Key Signals

• Improving Asset Quality: The System GNPA Ratio reached a multi-year low of 2.15% in 2025-26, continuing a sharp downward trend from its 14.58% peak in 2017-18.
• Reduced Banking Stress: The consistent decline in bad loans over the last nine years signals significantly strengthened bank balance sheets and better credit discipline.
• Rising Insolvency Resolutions: Insolvency filings (CIRP) remained elevated at 2,377 counts, indicating active use of formal mechanisms to resolve corporate distress and recycle capital.
• Systemic Stability: The combination of record-low NPAs and steady insolvency filings suggests a healthier financial ecosystem with robust mechanisms for handling defaults.