New Delhi, June 7 (FN Agency) Terming the bi-monthly monetary policy of Reserve Bank of India (RBI) as being on expected lines, industry chambers and senior corporate executives on Friday hailed the central bank for ‘ensuring price stability and supporting growth.’ “RBI’s unwavering focus on price stability for a sustainable economic growth would further cement the foundation for a long and robust run for the Indian economy,” said industry chamber Assocham’s secretary general Deepak Sood. The Monetary Policy Committee (MPC) of the RBI also decided by a majority of 4 out of 6 members to remain focused on withdrawal of accommodation to ensure that inflation progressively aligns to the target, while supporting growth. Amid most high-frequency economic indicators remaining positive, the RBI has raised its real GDP (gross domestic product) growth forecast for the current financial year 2024-25 to 7.2% from 7% estimated earlier.
Assuming a normal monsoon, retail inflation for 2024-25 is projected by the central bank at 4.5%. “The status quo MPC decision with a slimmer 4:2 majority was on expected lines. Macro dynamics stay comfortable with FY25 growth and inflation forecasts of 7.2% (stronger) and 4.5% (unchanged) respectively,” said Kanika Pasricha, Chief Economic Advisor, Union Bank Of India. Anish Shah, president of industry body FICCI, said he is encouraged by RBI’s outlook on growth in FY25. “We are encouraged by RBI’s outlook on growth in FY25, which has been revised upwards from 7 percent to 7.2 percent. The forecast for inflation for FY25 has been maintained at 4.5 per cent. This is positive and reflects RBI’s stellar actions in proactively addressing risks, thus keeping the economy on a strong momentum,” he said. Rajiv Agarwal, MD & CEO, Essar Ports said, “The RBI’s decision to keep the repo rate steady at 6.5% was expected in view of maintaining economic stability.
The GDP growth forecast of 7.2% for FY25 is a testament to the resilience and growth potential of our economy. For the ports and infrastructure sector, this stability in lending rates is welcome. The RBI’s policy provides a good foundation for the country to enhance investments and contain inflation.” Sanjeev Agrawal, President, PHD Chamber of Commerce and Industry (PHDCCI), in a press statement said that RBI’s decision to maintain a status quo on its policy rates will propel economic activity and boost economic growth. “The continuously accelerating economic growth and softening inflation trajectory, coupled with the status quo in repo rate will lead to much higher GDP growth in FY2025,” said Agrawal.