Senior leadership at Essar share their views on RBI’s Monetary Policy Statement, 2021-22

As the world monitors the effects of the Omicron variant, continuing with the accommodative stance while keeping the repo and reverse repo rate unchanged was the ideal way forward. The growth in India’s GDP in the second quarter of FY22 by 8.4% is a huge indicator of the economy recovering and moving forward. It is commendable to see how RBI is manging liquidity by using the variable rate reverse repo operations to absorb funds with an aim to maintain financial stability. As the Governor rightly said private investments are the need of the hour for a recovery in aggregate demand and we hope to see the necessary policy support in order to make the environment conducive.

Sanjay Palve
Senior Managing Director, Essar Capital


The Reserve Bank of India has been cognitive of the situation considering the Omicron variant threat and maintained key interest rates for a ninth straight time. Repo and reverse repo rates currently stand at 4 per cent and 3.35 per cent respectively, thus conducive to entrenching the recovery, fostering macro-economic and financial stability. The move to manage liquidity and continue using variable rate reverse repo operations to absorb funds is a well thought of move and in the right direction. We will hopefully see the economic revival process on track, which could otherwise get stunted if any hasty normalization decisions were taken.

Rajiv Agarwal
Operating Partner, Infrastructure – Essar Capital and
Managing Director – Essar Ports


The Reserve Bank of India maintaining the status quo on repo rates for the ninth consecutive time and keeping the stance accommodative was expected. Projection of Q1FY23 GDP growth retaining at 17.2 percent and easing CPI inflation is a big positive that will sustain and support a broad based economic recovery. Additionally, the ease in crude oil prices, reduction in VAT of fuel along with improvement in demand and consumption is a big positive, even though inflation needs to be further curbed. The advent of Omicron variant across the globe is something that will steer the economic scale for the next few months, and the RBI’s stance of being conservative and monitoring the situation before making any changes is the right way forward.

Pankaj Kalra
CEO, Essar Exploration and Production Limited, Mauritius