New Delhi: Industry body PHDCCI has strongly endorsed the Reserve Bank of India’s decision to keep the policy repo rate unchanged at 5.25 per cent.
Reacting to the Monetary Policy Committee’s (MPC) announcement, PHDCCI President Rajeev Juneja stated that the decision reflects a balanced approach. Specifically, the central bank is effectively containing inflation while actively supporting economic growth amid persistent global uncertainties.
[RBI Repo Rate Hold: 5.25%] ──▶ Balances Inflation & Growth Targets ──▶ Strengthens Industry Confidence
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[Sustained Investment Flow] ◀──( Supported by Strong Banking Liquidity )─────────┘
Strong Macroeconomic Fundamentals Driving Growth
Significantly, the industry body emphasized that the policy comes at a time when domestic inflation remains strictly within the RBI’s target range.
Despite risks from geopolitical tensions, global energy price volatility, and potential weather-related disruptions, the Indian economy exhibits remarkable resilience. Furthermore, sustained manufacturing activity, high capacity utilization, robust credit expansion, and targeted government infrastructure spending continue to drive domestic demand.
Key Economic Pillars Highlighted by PHDCCI:
Industrial Momentum: High capacity utilization and sustained manufacturing activity.
Trade Diversification: Rising merchandise exports backed by new free trade agreements.
Banking Stability: Surplus system liquidity and broad-based credit growth across sectors.
Foreign Exchange Cushion: Healthy forex reserves providing solid macroeconomic stability.
Additionally, PHDCCI noted that robust services exports will continue to support the external sector, while recent trade pacts expand international market access for domestic manufacturers.
Strengthening Cooperative Banking Frameworks
Crucially, the industry chamber welcomed the central bank’s targeted measures to reform the cooperative banking ecosystem.
[RBI COOPERATIVE BANKING REFORMS]
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[Urban Cooperative Banks: License Resumption] [Rural Cooperative Banks: Credit Framework]
PHDCCI Chief Executive Officer and Secretary General Dr Ranjeet Mehta praised the draft guidelines for resuming urban cooperative bank licensing. Similarly, he highlighted the revised credit monitoring framework for rural cooperative banks as a crucial step toward financial inclusion.
Ultimately, PHDCCI confirmed that the RBI’s balanced monetary policy provides long-term stability for businesses and investors, ensuring India maintains its position as the world’s fastest-growing major economy.
PHDCCI Assessment of RBI Policy Impact
| Economic Parameter | RBI Policy Measure | PHDCCI Industry Assessment | Strategic Impact on Business |
| Monetary Repo Rate | Maintained at 5.25 Per Cent | Anchors inflation expectations without stalling growth. | Preserves business stability and investor confidence. |
| Banking System Liquidity | Surplus Liquidity Maintained | Facilitates smooth, broad-based credit expansion. | Ensures adequate capital flow to MSMEs and industry. |
| Urban Cooperative Banks | New Draft Licensing Guidelines | Professionalizes regional cooperative institutions. | Expands formal credit access to smaller towns. |
| Export Infrastructure | Trade Deal Integration | Capitalises on newly operationalised trade pacts. | Accelerates manufacturing and merchandise exports. |
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