The new president of the Federation of Indian Chambers of Commerce and Industry (FICCI), Anant Goenka, has publicly called for the Reserve Bank of India (RBI) to implement a 25 basis point reduction in the repo rate at its upcoming policy review. Goenka stated that the current economic conditions, marked by low inflation and stable global oil prices, present the "right time" for such a move to further stimulate growth.
Favourable Economic Backdrop for Monetary Easing
Goenka's recommendation is grounded in recent positive macroeconomic data. India's retail inflation, measured by the Consumer Price Index (CPI), has seen a dramatic decline from 10.87% in October 2024 to a mere 0.25% in October 2025. This places it comfortably below the RBI's mandated target band of 2-6%. Simultaneously, a key driver of inflation—crude oil prices—has remained subdued.
The average price of India's crude oil basket in the current fiscal year has been around $67 per barrel. This figure is notably benign compared to the averages of $78.56 in FY25 and $82.58 in FY24. "We are hopeful of a rate cut by the RBI. This is the right time," said Goenka, who is also the Vice-Chairman of the RPG Group. "Crude oil prices have also been stable. We believe it's a good time for a 25 basis-point-rate cut to further spur economic growth."
Growth Outlook and Policy Support
Despite some moderation in recent indicators like GST collections and industrial output, Goenka expressed an optimistic outlook for the December quarter and the full fiscal year FY26. He pointed to the 7.9% growth in household spending during the September quarter as evidence of resilient demand.
He credited strong government measures for supporting the economy. "I think the measures taken by the government have been very strong, both the income tax relief in the Union budget and the recent GST reforms in addition to various other reforms that have happened all through the year," Goenka remarked. He acknowledged headwinds from global trade uncertainties and US tariffs but noted that clarity is gradually emerging.
On the business front, Goenka highlighted the positive impact of the new labour codes, calling them a "game-changer" for ease of doing business. He foresees minimal cost impact from their implementation, with the formalization of gig economy workers likely offset by the sector's rapid growth.
Call for Increased R&D and Capex
Looking forward, the FICCI chief emphasized the need for businesses to ramp up their investments, particularly in research and development. He noted that India's R&D expenditure stands at only 0.7% of GDP, significantly lower than the developed world's average of 3%.
"We must increase our investment and broaden our focus beyond India," Goenka urged. He advocated for targeting global markets like Europe and the US by investing in branding, design, and innovation to solve customer problems there. He also pitched for a corporate mindset change to include more women in the workforce through gender-friendly practices.
Underpinning his optimism is a belief in strong economic fundamentals. "India’s fundamentals are strong, the balance sheets are deleveraged, profits of companies are okay. Looking at all of that, I'm fairly optimistic that we are ready for fresh capex to come in," he concluded. The RBI's Monetary Policy Committee (MPC) is scheduled to announce its next decision on December 5.
