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Below the Quote on RBI MPC outcome by Mr. Debopam Chaudhari, Chief Economist, Piramal Group 

“The policy meeting outcome was in line with expectations regarding the repo rate. We now anticipate a 25 bps rate cut in the upcoming October meeting. Earlier, we had estimated the terminal policy rate for FY26 at 5%. However, given the sharp downward revision in RBI’s inflation forecast, we are revising our view to 4.75%.

 On the trade front, the current structure of US tariffs on India could cause short-term disruptions in production and employment across key sectors like textiles and auto components. However, proactive political engagement is expected to lead to a more amicable resolution within the next 30–60 days, mitigating broader economic fallout. Simultaneously, free trade agreements with other nations are likely to compensate for some of the business lost to the US. Additionally, lower borrowing costs should boost urban consumer demand—a key driver of India’s GDP. Taken together, these factors strengthen the outlook for India’s economic growth to surpass that of FY25.”

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