PR No – 88
09th April, 2025
New Delhi
Reduction in repo rate win-win for industry and consumer sentiments: PHDCCI
RBI’s MPC announcement to reduce the policy repo rate by 25bps to 6% and adoption of accommodating stance will provide a cushion to Indian economy from adverse effects of global economic uncertainty, while at the same time boost economic growth, said Mr. Hemant Jain, President, PHDCCI, in a press statement issued here today.
Government’s relaxation in income taxes announced during Budget 2025-26 along with reduction in interest rates will improve consumer sentiment which will accelerate GDP growth via uptick in private final consumption expenditure, he said.
On the industry front, reduction of policy rates will lower debt servicing costs providing extra cushion to the industry to absorb the external shocks such as the US tariff announcements recently, added Mr Jain.
At the same time, softened interest rates will kick start private CAPEX, said Mr Jain.
Buoyed by a strong seasonal correction in vegetable prices, assumption of normal monsoon and substantial reduction in global crude oil prices, we expect inflation to remain within RBI target range in the coming quarters, he said.
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Warm Regards,
Media Division, PHDCCI