IGI Logo

Below the Reaction On RBI Monetary Policy By Mr. Pankaj Kalra, CEO, Essar Oil and Gas Exploration and Production Limited

In a significant move, newly appointed RBI Governor Sanjay Malhotra has announced a 25 basis point cut in the repo rate, bringing it down to 6.25%—marking the first reduction in nearly five years. This decision signals a shift in monetary policy aimed at fostering economic recovery and stimulating growth amidst evolving global and domestic challenges. The RBI's rate-setting panel has projected India’s GDP growth for FY26 at approximately 6.7%, reflecting optimism about the economy's resilience.

“Under the guidance of new Governor Mr. Sanjay Malhotra, RBI’s decision to cut the repo rate by 25 basis points, is a move that signals a supportive approach toward sustaining economic growth. This reduction, after nearly five years, will help ease borrowing costs and provide much-needed liquidity to key sectors. For the oil and gas industry, a lower interest rate environment will encourage investment in exploration, infrastructure, and energy transition projects, ensuring a stable and efficient energy ecosystem.”

Above views are of the author and not of the website kindly read disclaimer