PHDCCI Welcomes RBI’s Repo Rate Pause, Citing Economic Resilience and Growth

The PHD Chamber of Commerce and Industry (PHDCCI) has lauded the Reserve Bank of India’s decision to keep the policy repo rate unchanged at 5.25%, describing it as a balanced and prudent move that fosters economic growth while keeping inflation in check. Despite global headwinds—such as geopolitical friction, fluctuating energy costs, and climate disruptions—the industry body emphasized that India's economy remains resilient. This strength is propelled by robust domestic consumption, high manufacturing capacity utilization, steady credit expansion, and persistent government investments in infrastructure. Additionally, PHDCCI anticipates sustained momentum in services exports and expects merchandise trade to gain traction through recent trade pacts and market diversification efforts. Highlighting the nation's financial stability, PHDCCI pointed to strong banking sector fundamentals, ample liquidity, and robust foreign exchange reserves as key drivers of macroeconomic strength. The chamber also praised the RBI's initiatives to fortify the cooperative banking landscape, including plans to resume licensing for urban cooperative banks and update the credit monitoring framework for rural institutions. Ultimately, PHDCCI expects this steady monetary stance to bolster business and investor confidence, maintain long-term growth momentum, and solidify India's status as a leading global economic driver.