RBI's repo rate cut is a timely and growth-oriented move: Sanjaya Mariwala

"The RBI's decision to reduce the repo rate by 25 basis points to 6% is a timely and growth-oriented move. As per some reports, India's exports to the US will be affected by the uncertainty in the global markets and may witness a decline of USD 5.76 billion in 2025 due to increased US tariffs. This measure, however, provides tariff-hit businesses some relief in terms of borrowing costs, enhancing their liquidity, helping them withstand the impact, and ensuring operational stability.

This rate cut may stimulate consumption and private spending, specifically in housing, MSMEs, and other interest-sensitive areas. It is in line with the mission to improve rural demand, support corporate balance sheets, and should boost government-led capex.

For optimal impact of this monetary relaxation, faster transmission of rate cuts by the banking system, better access to credit for export-oriented firms, and investments in trade-oriented infrastructure should be a priority, said Sanjaya Mariwala, President of the IMC Chamber of Commerce and Industry.”

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