“With Inflation expected to be above 4% in the next 12 months, RBI’s decision to raise the repo rate by 35 basis points to 6.25 % was no surprise. It is commendable as to how the Indian economy remains resilient and is still among the fastest-growing major economies in the world given the current turmoil and geopolitical situation witnessed around the world. Credit needs to be given to the RBI, led by Governor Shaktikanta Das, as to how the prices and size of the money in the economy has been managed. With rural demand recovering and urban consumption rising we are seeing green shoots of financial stability which is the main focus of the MPC along with curbing the increasing inflation.”
Mr Sanjay Palve
Sr. Managing Director, Essar Capital
“The decision of the Reserve Bank of India to increase the repo rate by 35 bps to 6.25% is a move that was anticipated by the market and reflects that inflation has peaked out. This gives hope especially for the infrastructure industry. With improved confidence and industry sentiments, there is a sense of optimism towards business outlook and demand growth. The GDP growth rate and the Indian Rupee has been resilient and shown stability, thus tiding through the global storm with confidence and endurance. The commitment of RBI to constantly monitor the inflation dynamics without effecting the growth rate is reassuring for the industry.”
Mr Rajiv Agarwal,
Operating Parter (Infrastructure), Essar
MD & CEO, Essar Ports
“The MPC’s decision to hike repo rate by 35 basis points to 6.25 % and focusing on ‘withdrawal of accommodation’ stance was necessary to curb the rising inflation levels and maintain financial stability. With PMI for Manufacturing and Services expanding in November and bank credit growing at double digits in the last eight months, we see positive signs of recovery where economic activity continues to remain firm even though the inflation levels remain high. Despite global headwinds, RBI has managed to navigate through the turbulence and ensure India still remains to be a bright spot in the world with a progressive and stable economy.”
Mr Pankaj Kalra
CEO – Essar Exploration & Production