India Inc’s finance heads have broadly welcomed the Reserve Financial institution of India’s (RBI) Financial Coverage Committee (MPC) resolution to maintain the coverage repo price 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 situations.
“The RBI MPC resolution displays a cautious however pragmatic evaluation of the macro surroundings, with inflation easing and development remaining resilient. By pausing, policymakers sign confidence that earlier tightening is feeding by means of, whereas preserving flexibility on future motion,”mentioned Alpesh Porwal, CFO, Aptitude Industries.
Porwal added that for rate-sensitive sectors similar to housing, infrastructure and manufacturing, the pause supplies welcome stability, whereas consumer-facing and providers sectors profit from improved visibility on demand and funding planning because the financial system strikes towards a extra balanced growth-inflation trajectory.
RBI Governor Sanjay Malhotra on Friday additionally introduced measures to spice up credit score circulate 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 can be notified shortly.
Malhotra additionally mentioned the ₹2.5 lakh crore cap beneath the Voluntary Retention Route (VRR) can be eliminated, whereas a regulatory framework for derivatives on company bond indices and whole return swaps on company bonds can be launched.
“The RBI’s continued emphasis on monetary inclusion, buyer safety and improved credit score circulate significantly 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 can allow higher participation by overseas debt buyers,” mentioned Shilpa Bhatter, Chief Monetary Officer, UGRO Capital.
‘Goldilocks’ macro situations
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 assist development with out jeopardising value stability. “Inflation is nicely beneath the goal, at round 1.7%, giving the RBI enough area to assist development with out compromising value stability. On the similar time, development forecasts have been revised upward to over 7.4%, reflecting resilient home demand and enhancing funding momentum,” he mentioned.
Sanjeev Jha, CFO, PERSOL India, mentioned the present macro surroundings is unusually nicely balanced. “Inflation may be very low proper now, and GDP development and credit score development is powerful. So a price minimize was not required. I feel general 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 financial system, supported by robust home demand and sustained public funding. Nonetheless, world uncertainties, geopolitical dangers, commodity value volatility, and local weather associated disruptions stay key headwinds.
“To maintain this development, India wants continued coverage stability, sooner infrastructure execution, a revival in personal capex, and assist for MSMEs. Sustaining value stability whereas enhancing manufacturing competitiveness and ability growth can be crucial to preserving development broad primarily based and sturdy,” Porwal mentioned.
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