India Inc’s finance heads have broadly welcomed the Reserve Financial institution of India’s (RBI) Financial Policy Committee (MPC) determination to maintain the policy repo fee unchanged at 5.25%, describing the transfer as a well-calibrated step that displays consolation on inflation, confidence in development, and stability in credit score conditions.
“The RBI MPC determination displays a cautious however pragmatic evaluation of the macro atmosphere, with inflation easing and development remaining resilient. By pausing, policymakers sign confidence that earlier tightening is feeding by, whereas conserving flexibility on future motion,”mentioned Alpesh Porwal, CFO, Aptitude Industries.
Porwal added that for rate-sensitive sectors reminiscent of housing, infrastructure and manufacturing, the pause gives welcome stability, whereas consumer-facing and companies sectors profit from improved visibility on demand and funding planning because the economic system strikes towards a extra balanced growth-inflation trajectory.
RBI Governor Sanjay Malhotra on Friday additionally introduced measures to spice up credit score movement and deepen monetary markets. The central financial institution proposed to lift the collateral-free mortgage restrict for MSMEs to ₹20 lakh from ₹10 lakh and permit banks to lend to REITs with prudential safeguards. Furthermore, he mentioned that revised rules for exterior business borrowings (ECBs) have been finalised and will likely be notified shortly.
Malhotra additionally mentioned the ₹2.5 lakh crore cap below the Voluntary Retention Route (VRR) will likely be eliminated, whereas a regulatory framework for derivatives on company bond indices and whole return swaps on company bonds will likely be launched.
“The RBI’s continued emphasis on monetary inclusion, buyer safety and improved credit score movement notably the enhancement of collateral free MSME loans to ₹20 lakh will meaningfully improve entry to credit score and ease the price of doing enterprise. The deal with deepening the home debt capital market is a welcome transfer as is the liberalisation of ECB tips and the lifting of the cap on VRR which is able to allow better participation by overseas debt buyers,” mentioned Shilpa Bhatter, Chief Monetary Officer, UGRO Capital.
‘Goldilocks’ macro conditions
CFOs mentioned that the MPC’s impartial stance displays consolation with each inflation and development dynamics. In keeping with RBI, the revised outlook for CPI inflation in Q1FY27 and Q2FY27 are at 4.0% and 4.2%, respectively, which the central financial institution mentioned continues to be benign and close to the inflation goal. In the meantime India’s inflation averaged at 1.7% between April-December 2025, as per Ecoomic Survey 2026-27.
Aneel Gambhir, CFO, DTDC Categorical, identified that the present macro backdrop provides the RBI room to help development with out jeopardising worth stability. “Inflation is nicely beneath the goal, at round 1.7%, giving the RBI ample area to help development with out compromising worth stability. On the similar time, development forecasts have been revised upward to over 7.4%, reflecting resilient home demand and bettering funding momentum,” he mentioned.
Sanjeev Jha, CFO, PERSOL India, mentioned the present macro atmosphere is unusually nicely balanced. “Inflation could be very low proper now, and GDP development and credit score development is powerful. So a fee reduce was not required. I believe total it’s a Goldilocks state of affairs for India the place all indicators are nicely balanced,” he mentioned.
Outlook optimistic, however dangers stay
CFOs mentioned the RBI’s projection of 6.9% GDP development in Q1FY27 and seven.0 per cent in Q2FY27 displays the inherent resilience of the Indian economic system, supported by sturdy home demand and sustained public funding. Nevertheless, world uncertainties, geopolitical dangers, commodity worth volatility, and local weather associated disruptions stay key headwinds.
“To maintain this development, India wants continued policy stability, quicker infrastructure execution, a revival in non-public capex, and help for MSMEs. Sustaining worth stability whereas enhancing manufacturing competitiveness and ability improvement will likely be vital to conserving development broad based mostly and sturdy,” Porwal mentioned.
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