RBI Cuts Repo Rate by 25 bps, Boosting Growth & MSMEs

WTC Mumbai and AIAI hail RBI’s repo rate reduction as a key move to enhance liquidity, support MSMEs, and sustain India’s robust economic growth.

The World Trade Centre (WTC) Mumbai and the All India Association of Industries (AIAI) have welcomed the Reserve Bank of India’s (RBI) decision to lower the policy repo rate by 25 basis points to 5.25%. The announcement was made today by RBI Governor Shri Sanjay Malhotra following the Monetary Policy Committee’s (MPC) review.

This strategic reduction arrives at a pivotal moment for the Indian economy, which is experiencing a unique combination of record-low inflation and strong growth. Retail inflation remains subdued, while the economy expanded at over 8% during the first half of the fiscal year. Analysts see the rate cut as a measured step to maintain growth momentum without compromising price stability.

Dr. Vijay Kalantri, Chairman of WTC Mumbai and AIAI, said, “Governor Shri Sanjay Malhotra has supported economic growth by reducing the benchmark repo rate by 25 basis points, thereby enhancing liquidity and ensuring that cheaper credit is available to borrowers. With this rate cut, coupled with a comfortable foreign reserve position and record-low inflation, RBI’s measures signal continued backing for economic growth while safeguarding market price stability. This will ensure that India’s growth story remains healthy and on track.”

He added, “WTC Mumbai and the AIAI hope that banks will actively pass on the benefits of rate cuts to MSMEs and exporters, ensuring timely and affordable credit to fuel further growth.”

The MPC has also maintained a neutral stance on monetary policy, signaling careful observation of the evolving economic landscape. This policy review follows India’s robust economic performance, with GDP growing at 8.2% in Q2 FY2026—the fastest pace in six quarters—while consumer price index (CPI) inflation eased to a historic low of 0.25% in October.