As the world grapples with geopolitical unrest, India’s monetary policy hangs in the balance. FICCI President Anant Goenka foresees the RBI holding firm on the repo rate, driven by fears of surging inflation and global volatility.
In an exclusive chat with media at an industry gathering, Goenka highlighted how current crises are battering Indian industry. Logistics expenses are soaring, input costs are climbing, demand is softening, and an air of prolonged uncertainty looms large. Global tensions are disrupting commercial flows, forcing businesses into a state of constant adaptation.
Predicting the fallout from these evolving conflicts is proving elusive, compelling companies to tackle fresh challenges every day. Disruptions in logistics, higher raw material prices, and reduced market demand are reshaping trade dynamics. This fog of uncertainty is also chilling investments and dampening overall confidence.
Businesses are laser-focused on sustaining operations despite supply chain breakdowns. Goenka pointed out that even trivial gaps, such as unavailability of packaging, can grind factories to a halt, causing widespread delays. He cautioned against the knock-on effects of elevated inflation and oil prices, which threaten to erode demand progressively.
Industry leaders are partnering with authorities to promote energy efficiency and robust contingency planning. Goenka praised the upcoming Jan Vishwas Bill 2026 for streamlining business operations by removing criminal penalties for petty compliance lapses, a relief for enterprises of all sizes and a boon for judicial efficiency.
Regarding RBI’s stance, persistent inflation makes rate reductions improbable. Goenka expects the bank to stay the course, keeping a sharp eye on price trends and international events. In an era of flux, this measured policy could anchor economic stability.
