India Inc Applauds RBI’s Upbeat Growth Forecast for FY25

India Inc commended the Reserve Bank of India's optimistic growth outlook for FY25 and anticipates a reduction in the key repo rate as inflation stabilizes. The central bank maintained its retail inflation forecast at 4.5%, reflecting robust economic growth and offering the new government leverage for reforms.

In a significant move, India Inc has warmly welcomed the Reserve Bank of India's (RBI) upbeat growth outlook for the fiscal year 2025. Business leaders anticipate a reduction in the key repo rate once inflation stabilizes, providing confidence for prolonged economic momentum.

The RBI's focus remains on keeping inflation within its 4% target band, with a margin of 2% on either side, while deriving policy decisions from the Consumer Price Index (CPI). The key interest rate was left unchanged, as expected, placing emphasis on inflation amid strong economic growth, which might offer Prime Minister Narendra Modi's new government room for further reforms.

Industry leaders lauded the RBI's actions, with Ficci President Anish Shah highlighting the revised growth forecast from 7% to 7.2% as a testament to proactive risk management. Additionally, experts emphasized that maintaining the policy repo rate at 6.5% ensures economic stability, potentially spurring investments and moderating inflation long-term.

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