(MENAFN- IANS) New Delhi, Dec 5 (IANS) Industry leaders across sectors on Friday welcomed the Reserve Bank of India's decision to reduce the repo rate by 25 basis points to 5.25 per cent, calling it a timely and confidence-boosting step that strengthens India's economic momentum.

The RBI's policy stance, supported by a revised GDP growth projection of 7.3 per cent and liquidity-enhancing measures, has been seen as creating a favourable environment for investments, exports, and infrastructure development.

Srinivasan Vaidyanathan, Operating Partner at Essar Capital, said the rate cut reinforces confidence in India's long-term growth trajectory and will strengthen sentiment across capital markets.

He noted that lower borrowing costs combined with macroeconomic stability will make it easier for both domestic and foreign investors to deploy funds into high-growth sectors, even amid global uncertainties.

“Lower borrowing costs and macro stability will further accelerate private investment, even as global uncertainties persist," Vaidyanathan stated.

Essar Oil and Gas Exploration and Production Limited's CEO, Pankaj Kalra, said the RBI's move will support stronger financial conditions for India's energy sector.

With the central bank maintaining a neutral stance, he said companies will be able to invest more confidently in expanding domestic energy capacity and accelerating the shift toward cleaner fuels.

“This kind of policy stability is essential for building a secure and sustainable energy future,” Kalra mentioned.

Ashish Rajgarhia, Executive Director at Essar Ports, said the rate cut provides timely support for India's infrastructure and logistics ecosystem.

“Stronger growth projections and improved financing conditions create fresh momentum for enhancing supply chain efficiency, improving logistics capacity, and accelerating infrastructure development across the country,” Rajgarhia mentioned.

Exporters also strongly welcomed the decision. The Federation of Indian Export Organisations (FIEO) described the rate cut as an encouraging move that will make Indian exports more competitive and ease liquidity pressures on exporters.

FIEO President S. C. Ralhan said the reduction in borrowing costs comes at an important moment as exporters face volatile global demand and fluctuating input prices.

He said cheaper credit will help exporters invest more freely in working capital, technology upgrades, and overseas marketing.

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