Industry Reacts to RBI Repo Rate Cut: A Timely Boost for Growth and Consumer Confidence

In a widely anticipated move aimed at reviving growth and reinforcing consumer sentiment, the Reserve Bank of India (RBI) has reduced the repo rate by 25 basis points, bringing it down to 6%. Alongside this rate cut, the central bank also signaled a shift in its policy stance from ‘neutral’ to ‘accommodative’, reflecting a more growth-supportive approach going forward.

This is the second consecutive rate cut by the RBI, reflecting a concerted effort to balance inflation control with economic revival. The decision comes at a time when the Indian economy is navigating global uncertainties including geopolitical tensions, fluctuating oil prices, and slowdown signals from key developed markets.

Economists say the move could act as a catalyst for domestic demand, especially when complemented by the recent Union Budget 2025–26, which introduced personal income tax relaxations and investment-friendly initiatives.

While markets had factored in a rate cut, the change in policy stance is being viewed as a strong signal of a potential easing cycle, prompting positive reactions from across sectors—from industry chambers and real estate developers to financial service providers and startup enablers.

Industry Calls It a “Win-Win”: PHDCCI Welcomes Growth-Oriented Stance

The PHD Chamber of Commerce and Industry (PHDCCI) hailed the RBI's move as a balanced and growth-supportive step that will help revive consumption and encourage private investment.

Hemant Jain, President of PHDCCI, said the rate cut, combined with the accommodative stance, is well-timed and aligned with macroeconomic needs.

“The MPC’s announcement to reduce the policy repo rate to 6% and adopt an accommodative stance will provide a cushion to the Indian economy from adverse global factors, such as geopolitical tensions and volatile commodity markets,” he noted.

He further explained that the dual impact of lower interest rates and Budget-driven tax reliefs would strengthen purchasing power, paving the way for higher private consumption, which has been a critical missing link in the recovery puzzle.

“The reduction in interest rates will ease the cost of doing business and support demand creation, particularly in the MSME sector and investment-heavy industries,” added Jain.

He emphasized that with inflation projected to stay within the RBI’s target range due to favorable monsoons and stable commodity prices, the move was both timely and appropriate.

Real Estate Sector Cheers the Cut: Homebuyers and Developers Stand to Gain

The interest rate-sensitive real estate sector was quick to welcome the decision, calling it a boost for both consumer affordability and developer liquidity.

Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd., said:

“This decision comes at a time when inflation is showing signs of easing. Lower interest rates directly translate into improved home affordability, encouraging more buyers to consider home purchases.”

Aggarwal believes that the move will spur demand, especially in the affordable and mid-segment housing markets, and allow developers to launch and complete more projects, driven by reduced capital costs.

Echoing similar views, Aman Sarin, Director & CEO, Anant Raj Limited, said:

“The change in stance from neutral to accommodative, along with two consecutive repo rate cuts, indicates the RBI is opening the door for further monetary easing. This will aid homebuyers and uplift housing demand, especially in the premium and luxury segments.”

Sarin added that EMI reductions and enhanced loan eligibility would directly benefit customers across income brackets.

Ashok Kapur, Chairman of Krishna Group and Krisumi Corporation, highlighted the broader impact:

“This move benefits both sides of the real estate equation—buyers and developers. Developers will now be more confident about launching new projects, while homebuyers who were waiting on the sidelines will be encouraged to make purchase decisions.”

Udit Jain, Director of ONE Group Developers, noted that the RBI had already hinted at this policy change in its previous review:

“This cumulative 50 bps cut in repo rate signals a clear shift towards growth support. Combined with the Union Budget’s tax sops, this could act as a strong trigger for real estate demand. The housing sector is likely to see increased traction across affordable, mid, and premium segments.”

Financial Sector Backs the Move: Retail Credit and Home Loans to Get Cheaper

The financial services industry has responded positively, viewing the decision as a step that will enhance credit access, particularly for retail borrowers and homebuyers.

Raoul Kapoor, Co-CEO of Andromeda Sales and Distribution Pvt Ltd, commented:

“The back-to-back rate cuts are a reflection of macroeconomic stability and a policy-driven effort to boost consumption. Lower repo rates will mean cheaper EMIs, better loan eligibility, and greater access to credit for individuals and small businesses.”

Kapoor said that the move could lead to stronger credit growth across urban centers and smaller towns, especially among first-time homebuyers and the self-employed.

“Banks and housing finance companies are likely to pass on the benefits, and this will further stimulate real estate and consumer spending, giving a fillip to the broader economy,” he added.

Startups and New-Age Businesses: A Window of Opportunity

For the startup ecosystem, particularly capital-intensive and growth-phase ventures, the RBI’s decision could be a game-changer.

• Lower interest rates could make working capital and term loans more accessible.

• Fintech and proptech startups are likely to benefit from increased credit activity and housing transactions.

• D2C brands, EV players, and sustainability-led startups could see more investor confidence and cheaper financing for expansion.

The accommodative stance also signals policy support for entrepreneurship, infrastructure, and innovation—key pillars of the new India growth story.

RBI’s Move Sets the Tone for Growth-Led Policy

With inflation under control and economic growth requiring a push, the RBI’s twin decisions—a repo rate cut and accommodative stance—are being widely seen as bold yet balanced.

Whether it’s industry players looking to ramp up CAPEX, homebuyers seeking affordable credit, or startups ready to scale, the policy shift offers hope and momentum across the board.

As the global economic landscape remains unpredictable, India’s domestic policy stability and forward-looking approach may well help the country stay on course for sustained, inclusive growth.