India's retail credit rises on gold loan boom as FMCG growth slows amid energy and monsoon challenges

India’s retail lending expanded in the fourth quarter of FY26, with total retail loans reaching Rs 170.2 lakh crore, a 16.6% year‑on‑year increase. Gold‑backed loans were the strongest driver, growing 50.4% YoY to Rs 18.6 lakh crore and becoming the second‑largest product after home loans, reflecting a shift toward secured, collateral‑backed credit.

A separate report on the Indian fast‑moving consumer goods (FMCG) sector warned that growth could moderate in FY26. Volume expansion, which was 4.5% in 2025‑26, may be limited by volatile crude prices tied to geopolitical tensions and a below‑normal monsoon. The base‑case scenario projects FMCG volume growth of 4‑4.5%, with an adverse outlook of 3‑4% if energy costs remain high and food inflation rises. Value growth remains robust at 13.1%, but consumer behaviour is shifting toward larger purchases less frequently, influencing pricing and product strategies.