Kolkata, June 6 (UNI) With inflation well within its comfort zone, the RBI on Friday, on expected lines, cut the benchmark repo rate by 50 basis points to 5.50 per cent effective immediately, according to EEPC India.

"By lowering borrowing costs, the move is set to provide a big impetus to growth and lift investor sentiment," EEPC India chairman Pankaj Chadha said.

Additionally, the central bank has decided to reduce the cash reserve ratio (CRR) by 100 basis points to 3% to enhance liquidity in the banking system. "We welcome the RBI's well-thought-out decisions," Chadha said.

As mentioned during the monetary policy statement, uncertainties persist on the global front, posing downside risks to merchandise exports. Several multilateral agencies have revised the global trade outlook downward for the current year.

Despite multiple challenges, engineering goods exports from India started on a positive note in FY26, clocking 11.28 pc year-on-year growth in April at $9.51 billion.

" The protective measures in terms of 50 pc duties on iron and steel and their derivatives by the US threaten to impact engineering shipments to our biggest market," the EEPC India chairman said.

He said the back-to-back interest rate cuts by the RBI is set to provide support to the industry and further push growth.

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