New Delhi: Citing favorable inflation and stable oil prices, the new president of the Federation of Indian Chambers of Commerce and Industry (Ficci) Anant Goenka on Tuesday said the “time is right” for another 25 basis point rate cut by the Reserve Bank of India (RBI) to boost growth further.
India’s CPI-based retail inflation rate eased from 10.87% in October 2024 to 0.25% in October 2025. The rate is now below the central bank’s target band of 2-6%. And oil prices, which have a modest effect on overall inflation, have moderated in recent months. India’s basket of crude has averaged just over $67 a barrel so far this fiscal year, which compares favorably to $78.56 in FY25 and $82.58 in FY24.
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“We are hoping for a rate cut by the RBI. Now is the right time,” said Goenka, vice-chairman of the RPG group, adding that the price situation is favourable. “Oil prices are also stable. We believe the time is right to cut the rate by 25 basis points to further accelerate economic growth.”
RBI has cut the repo rate by 100 bps to 5.5% so far this calendar year. The key interest rate was left unchanged at the last monetary policy review in October. The central bank’s Monetary Policy Committee (MPC) is due to announce its next move on December 5.
Asked about the moderation in the growth in Goods and Services Tax (GST) collections in November as well as in October factory output in India, Goenka said despite these signals, the outlook for the December quarter and FY26 remains bullish. “We are still optimistic about the rest of the year… We see good demand,” Goenka said, citing 7.9% growth in household spending in the September quarter.
“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 along with various other reforms that have been going on throughout the year,” Goenka said.
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India’s GST collections grew at a slower pace than usual, only marginally higher than a year ago ₹1.7 trillion in November, hit primarily by a sharp cut in tax rates as well as the impact of increased US tariffs. And according to the latest data, the country’s industrial output rose just 0.4% in October from 3.7% a year ago, while the 2.7% expansion in April-October 2025 was much slower than 4% a year ago.
There was a lot of uncertainty for about six to eight months this year due to supply chain issues and tariffs on Indian exports, but clarity is emerging on the front, he said, citing global trade uncertainty around steep US tariffs and India’s talks on a deal with the world’s largest economy.
“India’s fundamentals are strong, balance sheets are deleveraging, corporate earnings are fine. Looking at all of that, I’m fairly optimistic that we’re ready for new capital spending to come in.”
Goenka said businesses should increase their spending on research and development. “Industry is not spending enough on R&D. Our current expenditure is 0.7% of GDP, which is well below the developed world average of 3%. We need to increase our investment and broaden our focus beyond India. This includes trying to solve customer problems in global markets such as Europe and the US by investing in brand, design, packaging and innovation for these regions. This represents a key area for greater collaboration between industry and the Chamber of Commerce.”
Goenka said the recent implementation of the new labor laws is a game changer that greatly eases doing business in the country. The codes introduce uniformity in rules, favoring employees with better retirement benefits, safety and regulations for gig workers and women working night shifts.
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On the cost of doing business as a result of the implementation of the labor code, Goenka said despite minor adjustments in wages for pension benefits in certain areas, no significant impact was observed. “In principle, there should be no change, especially with easier compliance. While some formalization for gig economy workers may lead to minor cost adjustments, rapid growth in the sector is expected to offset any additional staff costs,” he added.
He also called for a change in mindset, saying businesses must be open to having more women in the workforce and bring in gender-friendly practices.
