In a big move to stabilise India’s growth in the face of global headwinds, the Reserve Bank of India (RBI) has imposed a repo rate cut of 25 bps to 6%, its second consecutive cut. With the central bank shifting to an “accommodative” stance, India Inc has responded quickly, especially in sectors that are closely linked to credit cycles like real estate and financial services.
Among the many industry responses, five stood out with great insights: Siddha Group, Transcon Developers, IndiaBonds, Square Yards, and AU Corporate Advisory and Legal Services. These companies not only welcomed the move but also gave a forward-looking view on how this will impact the lending, housing and investment landscape.
Siddha Group
Samyak Jain, Director at Siddha Group, interpreted the RBI’s rate cut as an affirmation of its commitment to growth. He noted that the move “enhances affordability, which is the cornerstone of sales revival,” especially in cities like Mumbai, where housing costs remain elevated.
“With EMIs set to reduce, this is likely to attract first-time buyers and ‘fence-sitters’ who had been waiting for a more favorable lending environment,” Jain said, emphasizing that the timing—post the festive Gudi Padwa period, could help sustain sales momentum. For Siddha and other metro-focused developers, the rate cut is a green signal to continue pushing urban inventory, particularly in mid and premium segments.
Transcon Developers
Shraddha Kedia-Agarwal, Director of Transcon Developers, echoed similar optimism, calling the policy shift “a strategic push towards economic revival.” She stressed that the rate cut, coupled with controlled inflation, will significantly uplift buyer sentiment, especially in metros where ticket sizes are large and affordability remains a primary concern.
“Lower interest rates make home loans more attractive and will go a long way in supporting the real estate sector’s momentum,” Kedia-Agarwal stated. According to her, the RBI’s approach underlines a commitment to fostering a healthy credit ecosystem, critical for driving end-user demand and enabling premium housing segments to thrive.
IndiaBonds
From a fixed income and capital markets perspective, Vishal Goenka, Co-Founder of IndiaBonds.com, emphasized that the central bank has now clearly pivoted to a pro-growth stance. “With inflation expected at 4% and GDP growth at 6.5% for FY26, the policy is balanced and likely signals a long pause from here,” Goenka noted.
However, he cautioned that global factors—especially U.S.-led tariff disruptions—could prompt further intervention. For investors, the accommodative stance implies a favorable environment for bonds and a potential softening in yields. But Goenka highlighted the importance of maintaining a flexible portfolio: “Expect volatility to persist. Diversification across asset classes remains essential.”
Square Yards
Piyush Bothra, Co-Founder and CFO of Square Yards, welcomed the RBI’s decision as a “timely and encouraging” step, especially given the backdrop of rising property prices.
“With average housing prices jumping 17% across top Indian cities over the last year, the rate cut translates to more affordable EMIs, making home ownership increasingly achievable,” Bothra said. He also noted that improved liquidity could help developers roll out new projects faster, further stabilizing supply-demand mismatches.
Bothra pointed out that the real value of the policy would emerge if commercial banks effectively transmit the cut to consumers, a concern echoed across the real estate sector. Nonetheless, the signal is clear: the RBI is laying the groundwork for a residential real estate upswing.
AU Corporate Advisory
Perhaps the most encompassing macroeconomic view came from Akshat Khetan, Founder of AU Corporate Advisory and Legal Services. Calling the RBI’s move both “timely and strategic,” Khetan praised the central bank for capitalizing on low inflation, reported at 3.61% in February 2025, to stimulate domestic growth.
“Lowering the repo rate sends a clear message: India is not stepping back; it’s stepping forward,” Khetan said. The move, he added, aligns with the government’s broader growth-led recovery vision, supporting MSMEs, startups, and the real estate sector through easier credit access.
As businesses brace for continued uncertainty from U.S. tariffs, Khetan believes the policy provides a “much-needed cushion to maintain momentum” in entrepreneurship and private sector investment.
Beyond the Headlines: Why This Matters
India remains the world’s fastest-growing major economy, but its growth is moderating. A slide from 9.2% to 6.5% GDP growth in just one year underscores how vulnerable even robust economies are to external protectionist shocks.
The RBI’s policy stance is a calculated blend of caution and stimulus, designed to shore up economic resilience without overcommitting. However, as emphasized by nearly all industry voices, transmission is key. Without timely and adequate rate pass-through from commercial lenders, the benefits of this move could remain largely theoretical.
Investor Takeaway
For investors, these industry reactions provide clear takeaways:
- Real estate stocks and home finance lenders may gain ground if banks start transmitting lower rates.
- Bond yields may soften further, benefiting fixed-income investors.
- Diversification across asset classes remains crucial as global uncertainty persists.
With inflation under control, the door remains open for more cuts, particularly if global economic conditions deteriorate. But for now, the RBI has made its stance clear: growth is a priority, and it’s ready to act.
Conclusion
The voices of Siddha, Transcon, IndiaBonds, Square Yards, and AU together paint a picture of cautious optimism. While each sector faces its unique set of challenges—be it project execution, investor volatility, or loan transmission—the RBI’s rate cut is widely seen as a strong step toward mitigating external shocks and reigniting domestic growth engines.
As India navigates a global economic minefield of protectionism and geopolitical turbulence, this strategic monetary maneuver could well be the tailwind that keeps its growth story intact—if, and only if, stakeholders across the financial spectrum follow through.
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