Senior leadership at Essar share their views on RBI’s Monetary Policy Statement dated 8 June 2022

The focus of RBI continues to be on curbing inflation and supporting India’s economic growth. Its decision to increase the policy repo rate by 50 basis points to 4.90 per cent was expected as it factors in real-time ground realities of elevated inflation and geopolitical crisis. With the inflation rate expected to remain above 6% through Q3 FY23, RBI has to take adequate measures to have a strong hold on inflation targets. With rural co-operative banks in a position to now extend finance to commercial real estate, or loans for residential housing projects, businesses can look forward to easing its long term availability of funds.

With the RBI and the government working together to revive and withstand growth, we are optimistic about the broad-based economic revival.

Sanjay Palve 
Senior Managing Director, Essar Capital

The Reserve Bank of India’s decision to raise repo rate by 50 bps was indeed expected. The change in stance from accommodative to withdrawal will ensure inflation remains within targets going ahead, however that could hamper some business opportunities. The economic growth of our country requires support from RBI and the strengthening of the banking system will further boost economic recovery. RBI’s projections of GDP growth rate of 7.2% and inflation of 6.7% for FY23 remain realistic

Rajiv Agarwal
Operating Partner (Infrastructure), Essar
Managing Director, Essar Ports