Anant Goenka, President of FICCI, expressed that due to inflation pressures, a rate cut would be challenging, suggesting the RBI might maintain current rates. He highlighted the negative impacts of the ongoing geopolitical crisis on Indian industry, such as logistics issues, cost escalations, demand slowdown, and uncertainty. Goenka emphasized the industry’s struggle with unpredictability caused by global tensions, affecting various business aspects like logistics, input costs, and demand fluctuations.
Companies are facing daily challenges as the conflict’s dynamic nature hinders outcome predictions and future planning. Business continuity remains a top priority for firms, with a focus on operational stability despite supply chain disruptions. Even minor shortages, like packaging materials, can disrupt production and delivery schedules, causing ripple effects across sectors. Goenka warned of potential secondary impacts from inflation and higher oil prices, which could further weaken demand over time.
Regarding policy reforms, Goenka praised the Jan Vishwas Bill 2026 as a positive step towards enhancing the ease of doing business. He highlighted the bill’s role in reducing the criminalization of minor compliance issues, benefiting enterprises of all sizes. Additionally, the reform is expected to alleviate the judicial system’s burden by addressing minor cases, allowing courts to prioritize more critical matters. Looking ahead to the RBI’s monetary policy decision, Goenka anticipated no rate cut due to persistent inflationary pressures, suggesting a status quo while monitoring inflation and global developments.
