Industry Leaders Hail RBI’s 25 bps Rate Cut as a Major Push for India’s Growth Momentum
Image: IANS
Industry leaders across energy, infrastructure, and exports sectors on Friday welcomed the Reserve Bank of India’s decision to reduce the repo rate by 25 basis points to 5.25 per cent, calling it a timely move that reinforces confidence in India’s economic direction.
The rate reduction, alongside the RBI’s upgraded GDP growth projection of 7.3%, is being viewed as a catalyst for easing liquidity constraints and supporting stronger financial conditions across industries.
Srinivasan Vaidyanathan, Operating Partner at Essar Capital, said the rate cut validates India’s long-term growth trajectory. He noted that lower borrowing costs coupled with macroeconomic stability will help investors channel funds into high-growth sectors despite global uncertainties.
Echoing similar sentiments, Pankaj Kalra, CEO of Essar Oil and Gas Exploration and Production Limited, said the move provides crucial stability for India’s energy transition. The neutral policy stance, he added, will encourage companies to expand domestic energy capacity and accelerate the move towards cleaner fuels.
In the infrastructure sector, Ashish Rajgarhia, Executive Director at Essar Ports, said the rate cut will strengthen supply chain efficiency, logistics capacity, and large-scale infrastructure development—key components for sustaining India’s high-growth aspirations.
Exporters also welcomed the decision enthusiastically. The Federation of Indian Export Organisations (FIEO) said cheaper borrowing will help Indian exporters stay competitive amid fluctuating global demand and rising input costs. FIEO President S.C. Ralhan noted that the RBI’s move arrives at a crucial moment when exporters need liquidity to fund technology upgrades, working capital, and overseas expansion.
Our Thoughts
The RBI’s rate cut arrives at a decisive moment for India’s economic landscape. With borrowing becoming cheaper and liquidity easing, the move sets the stage for stronger investment cycles, infrastructure expansion and improved export competitiveness. As global markets remain volatile, the central bank’s calibrated policy sends a reassuring signal to businesses and investors. The coming months will offer a clearer picture of how effectively sectors leverage this opportunity — but the sentiment is unmistakably positive.
