Edelweiss CEO Radhika Gupta: RBI's Repo Rate Cut and Tax Revisions to Boost Economic Growth
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Synopsis
Radhika Gupta, CEO of Edelweiss Asset Management, highlights the RBI's recent repo rate cut and the increase in income tax exemption as significant measures to stimulate economic growth in India. These changes are expected to enhance disposable income and boost investments.
Key Takeaways
- RBI's repo rate cut will stimulate economic growth.
- Income tax exemption limit raised from Rs 7 lakh to Rs 12 lakh.
- Lower interest rates will encourage borrowing and spending.
- Combination of tax benefits and lower rates supports development.
- India's economy remains resilient amidst global challenges.
New Delhi, Feb 7 (NationPress) The Reserve Bank of India's (RBI) decision to reduce the repo rate by 25 basis points is a timely initiative that will spur economic growth, according to Radhika Gupta, CEO of Edelweiss Asset Management.
In a recent interview, she emphasized that the central bank's action serves as a catalyst for the prevailing economic landscape.
Gupta stated, "Lower interest rates will decrease borrowing costs, thereby promoting investments and consumer spending, which will ultimately enhance the economy," while speaking to IANS.
The central bank has decreased the repo rate from 6.50 percent to 6.25 percent, marking its first rate cut in five years.
The last reduction occurred in May 2020 during the economic downturn prompted by the pandemic.
Additionally, Gupta described the Union Budget 2025-26 as a "dream budget" for the average citizen.
She noted that the rise in the income tax exemption limit from Rs 7 lakh to Rs 12 lakh under the new tax framework will result in increased disposable income for individuals.
Gupta added, "With greater disposable income, spending and investments will surge, leading to higher demand and an economic uplift. This will also create a multiplier effect on growth in the long term."
During the Union Budget presentation on February 1, Finance Minister Nirmala Sitharaman revealed the changes to the new tax regime, raising the exemption threshold to Rs 12 lakh to alleviate the financial burden on middle-class taxpayers.
Gupta further pointed out that despite global uncertainties, India’s economy is advancing steadily.
She remarked, "Increasing the income tax exemption limit and lowering the repo rate are positive steps. These initiatives will facilitate the country's growth trajectory."
Gupta concluded, "The synergy of tax advantages and lower interest rates will bolster India’s aspiration of becoming a developed economy by ensuring sustained growth."
