The Reserve Bank of India’s (RBI) prudent monetary framework, as lauded by industry chamber Assocham, is expected to enhance market confidence, bolster manufacturing and trade activities, and elevate India’s global competitiveness. Assocham commended the RBI’s decision to maintain a stable policy stance and implement measured actions, anticipating positive impacts on economic growth, consumer demand, producers’ sentiment, and exporters’ competitiveness. Nirmal Kumar Minda, President of Assocham, highlighted the Monetary Policy Committee’s balanced and forward-looking approach in the face of evolving global and domestic challenges, especially with the repo rate unchanged at 5.25 per cent.
The industry chamber emphasized that the RBI’s neutral stance, amidst inflation within tolerance levels and sustained growth momentum, offers essential policy certainty for businesses and investors. Notably, the upward revision of GDP growth forecasts for FY27, with projections at 6.9 per cent for Q1 and 7 per cent for Q2, underscores the resilience of the Indian economy, supported by continuous capital expenditure and multiple trade agreements since 2020. Saurabh Sanyal, Secretary General of Assocham, emphasized the crucial role of the RBI’s calibrated approach in maintaining inclusive, stable, and long-term economic growth amid geopolitical uncertainties and fiscal pressures.
Morgan Stanley, in its analysis, anticipates the RBI to implement liquidity enhancement measures to facilitate policy transmission, with future actions dependent on evolving growth-inflation dynamics. Sonal Badhan, economist at Bank of Baroda, noted the RBI’s decision to defer full-year forecasts until April 26, awaiting the release of new data this month. The RBI Governor’s emphasis on sustaining growth momentum indicates a shift towards a prolonged pause in the rate cutting cycle, as per Badhan’s assessment.
