India's economy grows 7.2%, World Bank sees 6.5% next year on tariff headwinds

For DSAs and lenders, stronger growth and job creation typically signal rising borrower capacity and loan demand. More employment means more individuals qualify for credit; stronger business growth expands the SME lending pool. The near-term (2025) outlook remains supportive for loan origination, though DSAs should prepare for tighter margins if tariff-driven slowdown begins hitting their borrower base in 2026.

Connectors and loan agents should watch tariff impacts on their sectors. Manufacturing and export-heavy segments may face pressure; domestic-facing businesses (retail, services, construction) will likely remain stronger. Portfolio quality may diverge by sector, making borrower segmentation and risk management more critical than before.