Business Community Calls for RBI Policy Caution Amid Growth Gains Under Modi

The Indian business fraternity voiced measured optimism about the country’s economic outlook following the RBI’s decision to lift the repo rate to 5.50% by 25 basis points. Speaking on behalf of the IMC Chamber of Commerce and Industry, Professor Mahendra Chauhan praised Prime Minister Narendra Modi’s 25‑year governance record for delivering stability, heightened investor confidence, and a surge in service‑export earnings. While acknowledging the rate increase as aligned with market expectations, Chauhan warned that the RBI’s reluctance to trim short‑term rates could raise operational costs for companies. He urged the central bank to adopt a data‑driven approach in future policy moves, underscoring that India posted a 7.8% GDP growth in the first quarter of FY27, maintains strong foreign‑exchange reserves, and continues to improve its global stature. Industry leaders see Modi’s charismatic leadership as a catalyst for sustained growth, but they stress the need for monetary policy that balances inflation control with cost‑of‑capital considerations.