RBI’s balanced policy stance to support growth, investment sentiment: PHDCCI
- IBEF
- August 6, 2026
The PHD Chamber of Commerce and Industry (PHDCCI) has welcomed the Reserve Bank of India’s decision to maintain the policy repo rate at 5.25%, stating that the balanced monetary policy stance will support economic growth while keeping inflation under control amid global uncertainties. According to PHDCCI, the decision reflects the Reserve Bank of India’s prudent approach as inflation remains within the target range despite risks arising from geopolitical tensions, volatile global energy prices and weather-related disruptions. The industry body noted that India’s economic resilience continues to be driven by robust domestic demand, sustained manufacturing activity, strong capacity utilisation, healthy credit growth and the Government’s continued focus on infrastructure development. It also highlighted that services exports are expected to remain strong, while merchandise exports are likely to benefit from recently concluded trade agreements and ongoing efforts to diversify export markets.
PHDCCI further emphasised that healthy banking sector fundamentals, including surplus system liquidity, broad-based credit expansion across sectors and adequate foreign exchange reserves, continue to reinforce India’s macroeconomic stability. The chamber also welcomed the Reserve Bank of India’s proposed measures to strengthen the cooperative banking sector, including draft guidelines for resuming licensing of urban cooperative banks and a review of the credit monitoring framework for rural cooperative banks. It noted that the Monetary Policy Committee’s continued emphasis on maintaining price stability while supporting growth is expected to sustain economic activity, strengthen business and investor confidence, and reinforce India’s position as one of the world’s fastest-growing major economies. According to the industry body, the policy is expected to provide greater stability for businesses and investors while preserving the country’s long-term growth momentum amid evolving domestic and global economic conditions.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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