Delhi Chandni Chowk MP and Confederation of All India Traders (CAIT) Secretary General Praveen Khandelwal welcomed the Reserve Bank of India’s decision to reduce the repo rate by 25 basis points, calling it a pro-growth move that will lower borrowing costs for businesses and consumers. With inflation projected at 4.8% for FY 2025 and 4.2% for FY 2026, the move ensures a balance between economic growth and price stability.

Khandelwal emphasized that lower EMIs on home and business loans will provide financial relief, boost disposable incomes, and enhance consumer spending. Increased liquidity in the market will encourage business investments and overall economic momentum.

He further noted that the income tax exemption limit is increased to ₹12 lakh in the upcoming budget, would significantly enhance household savings. The additional savings would drive higher consumer spending, increased demand, and greater market liquidity, ultimately fueling economic growth and a potential market boom.