Panorama May 2026

The report highlights a significant improvement in India's labor market since 2025 and a pickup in system credit growth to 16% in FY26. However, it notes that foreign investment remains weak, with heavy FPI selling in the IT and consumer sectors.

Key Takeaways

• 1.India's unemployment rate has significantly declined across rural and urban regions since early 2025 despite an increasing labor force participation rate.
• 2.System credit growth accelerated to 16% YoY in FY26, primarily driven by a recovery in bank credit and a doubling of corporate bond growth.
• 3.Manufacturing has overtaken construction to become the largest non-agricultural employer in India.

Table of Contents

• India Employment Trends
• Credit, FDI & FPI Flows