Archive · 2 Sep 2026
Indian Economy Shows July Resilience as Business Momentum Slows
India’s economy showed some strength in July.
More goods were moved by rail than in the previous month.
Banks also increased the amount of non-food credit they had outstanding.
Growth in important core industries slowed slightly from June.
However, it was still stronger than in May.
A measure called the composite PMI showed that business activity was still expanding.
But the PMI dropped for the third month in a row.
This suggests that the broader economy may be losing some momentum even while certain production measures remain firm.
Rail freight growth accelerated to 9% in July from 4% in June.
Banks’ outstanding non-food credit growth rose to 19.1% from 18.3%.
Core-sector growth moderated to 5.4% in July from 6% in June.
Core-sector growth remained above the 3.2% recorded in May.
The composite PMI fell to 54.3, its third consecutive monthly decline, but remained above 50.
- Who
- The Indian economy, banks, rail freight operators, and businesses measured by the composite PMI.
- What
- July indicators showed stronger rail freight and bank credit growth, while core-sector growth and the composite PMI weakened compared with June.
- When
- July, compared with June and May figures.
- Where
- India.
- Why
- The figures indicate resilience in some production and credit measures, but also risks from slowing broader business activity.
- Rail freight growth
- 9% in July, up from 4% in June
- Non-food credit growth
- 19.1% in July, up from 18.3%
- Core-sector growth
- 5.4% in July, down from 6% in June
- May core-sector growth
- 3.2%
- Composite PMI
- 54.3 in July, down from 57.1 in June and 59.3 in May
- PMI expansion threshold
- A reading above 50 indicates expansion