New Delhi, Dec 5 (NationPress) Industry leaders from various sectors expressed their approval of the Reserve Bank of India's decision to lower the repo rate by 25 basis points to 5.25 percent. They characterized this move as a well-timed and confidence-enhancing action that propels India's economic momentum forward.

The RBI's policy orientation, backed by an updated GDP growth forecast of 7.3 percent along with liquidity-boosting measures, is perceived as fostering a conducive atmosphere for investments, exports, and infrastructure enhancement.

Srinivasan Vaidyanathan, Operating Partner at Essar Capital, remarked that the rate reduction bolsters confidence in India's long-term growth path and is likely to uplift sentiment in capital markets.

He pointed out that reduced borrowing costs, coupled with macroeconomic stability, will facilitate both domestic and foreign investors in channeling funds into high-growth sectors, even in the face of global uncertainties.

“The combination of lower borrowing costs and macroeconomic stability will significantly accelerate private investment, despite ongoing global uncertainties,” Vaidyanathan commented.

Pankaj Kalra, CEO of Essar Oil and Gas Exploration and Production Limited, noted that the RBI's decision will contribute to improved financial conditions within India's energy sector.

With the central bank's neutral stance, he stated that companies can invest more confidently in expanding domestic energy capacity and hastening the transition to cleaner fuels.

“Such policy stability is vital for establishing a secure and sustainable energy future,” Kalra emphasized.

Ashish Rajgarhia, Executive Director at Essar Ports, mentioned that the rate cut offers timely assistance for India's infrastructure and logistics framework.

“Elevated growth forecasts and enhanced financing conditions generate fresh momentum for improving supply chain efficiency, boosting logistics capacity, and accelerating infrastructure projects nationwide,” Rajgarhia said.

Exporters have also warmly received the decision. The Federation of Indian Export Organisations (FIEO) hailed the rate cut as a positive development that will enhance the competitiveness of Indian exports and alleviate liquidity strains on exporters.

FIEO President S. C. Ralhan remarked that the decrease in borrowing costs arrives at a critical time as exporters grapple with variable global demand and fluctuating input costs.

He added that cheaper credit will empower exporters to invest more freely in working capital, technological advancements, and international marketing.