FX.co ★ India’s M3 Growth Accelerates to 16.9%, Signalling Persistent Liquidity Expansion

India’s broad money supply (M3) growth edged higher to 16.9%, up from the previous reading of 16.6%, according to data updated on 12 October 2026. The increase indicates a continued expansion of liquidity in the financial system.

M3, which typically includes currency in circulation, demand deposits, and time deposits, is a key gauge of overall money supply and banking sector depth. The uptick from 16.6% to 16.9% suggests that monetary conditions remain accommodative, with banking deposits and money available in the economy still growing at a robust pace.

While the data release does not provide details on the drivers of this acceleration, the sustained high growth in M3 will be closely watched by markets and policymakers for its implications on credit growth, inflation dynamics, and the broader trajectory of India’s economic activity.