By: Monarch Goyal, Partner, Mechamorph Industries on Repo Rate Reduce.

The RBI’s approach to the repo rate has a direct bearing on the manufacturing environment. A positive rate scenario lowers the cost of borrowing, enabling industries such as ours to invest more assertively in R&D, automation, and scaling up. For Mechamorph Industries, this means quicker innovation cycles and increased efficiency in production. Policy continuity is crucial to ensure momentum, particularly for MSMEs and technology-led manufacturers. We consider the repo rate an important driver of industrial growth and stability.