Indian Economy Eyes Growth with Central Bank's Rate Cut

Finance Minister Nirmala Sitharaman praised the Reserve Bank's decision to cut policy rates, emphasizing the need for support from both the central bank and the ministry amidst global uncertainities due to US tariffs. The reduction aims to bolster domestic demand, maintaining the Indian economy's resilience.

In a significant move, the Reserve Bank of India reduced key interest rates, a decision warmly welcomed by Finance Minister Nirmala Sitharaman. She emphasized the importance of the central bank's support in navigating global uncertainties heightened by US tariff hikes.

Addressing the press at the London Stock Exchange alongside UK Chancellor Rachel Reeves, Sitharaman expressed confidence in the Indian economy's strong domestic demand. She pointed to how this demand serves as a foundational support in turbulent global markets.

With the Monetary Policy Committee cutting the repo rate to six percent, Sitharaman acknowledged the pivotal role of domestic consumption, powered by a growing middle class, in ensuring sustained economic growth amidst international challenges.

(With inputs from agencies.)