it’ll Cushion GDP From Global Turmoil: India Inc

The tax relaxation in Budget-26 along with reduction in interest rates will improve consumer sentiment, which will accelerate GDP growth - Hemant Jain, President, PHDCCI

New Delhi: The Reserve Bank’s move to lower its benchmark repo rate for the second time in a row will cushion India’s economy against external shocks in the face of reciprocal tariffs imposed by the US that has triggered a global turmoil, industry bodies said on Wednesday.

The RBI on Wednesday slashed the key interest rate by 25 basis points to 6 per cent providing relief to home, auto and corporate loan borrowers. CII Director General Chandrajit Banerjee termed the decision to continue with the rate easing cycle as timely and prudent.

“The rate cut coupled with the shift in monetary policy stance from ‘neutral’ to ‘accommodative’, too, is a big positive,” Banerjee said.