Business Economy


Industry experts say policy on expected lines, no major surprises

New Delhi, April 8 (UNI) Welcoming the Reserve Bank of India’s move of keeping the policy repo rate unchanged at 5.25pc and maintaining a “neutral stance”, industry experts shared optimistic opinions.
Elaborating on the market-oriented perspective, N ArunaGiri, CEO of TrustLine Holdings, noted that the RBI policy was largely on expected lines, with no major surprises or headline announcements.
“However, the key takeaway from the policy lies in the RBI’s assessment of the impact of ongoing geopolitical tensions,” he said.
He highlighted that the central bank has indicated only a marginal impact on both inflation and GDP growth projections, which is noteworthy in the current global context. This provides a significant degree of comfort and reinforces the broader narrative of macro resilience for the Indian economy.
“In our view, this remains the most important signal from the policy, underscoring the strength and stability of the underlying macro environment,” he added.
Echoing the same, Ratul Puri, Chairman of Hindustan Power, said the RBI’s decision was on expected lines and reflects a calibrated approach as it assesses the impact of the West Asia conflict on growth and inflation.
He said India’s dependence on oil and gas imports means that supply disruptions, along with rising freight and insurance costs, could play out over the next few months and may build inflationary pressures.
While the recently announced two-week truce is a welcome step, it is critical that the cessation of hostilities becomes permanent so that oil prices decline to pre-war levels.
Puri added that the Indian economy is currently on a stronger footing, supported by low interest rates, benign inflation and strong private consumption, making it better prepared to absorb shocks arising from the ongoing energy crisis.
He also emphasised that this is the time to strengthen domestic energy security and accelerate the push towards electrification, leveraging India’s abundant coal reserves and solar potential.
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