New Delhi, April 8: Anant Goenka, the President of FICCI, stated on Tuesday that the Reserve Bank of India (RBI) may maintain the repo rate due to rising global instability and inflation risks.
Speaking on the sidelines of an event, he noted that the current geopolitical crisis has adversely affected the Indian industry through increased logistics costs, decreased demand, and long-term uncertainty.
Goenka remarked, “Business activities are being disrupted due to global geopolitical tensions, leading the industry to grapple with rising uncertainty.”
He emphasized that the changing nature of conflicts makes it challenging to predict outcomes or plan ahead, forcing companies to face daily challenges.
Goenka explained, “The crisis has impacted various aspects of business, including disruptions in logistics, rising input costs, and a decline in demand.”
He further mentioned that long-term uncertainty is also affecting investment decisions and overall business sentiment.
A major concern for companies is maintaining business continuity. He stated, “Companies are focusing on ensuring factory operations despite disruptions in the supply chain.”
He added, “Minor shortages, such as the unavailability of packaging materials, can halt production and delay supplies, leading to widespread effects in industries.”
Goenka specifically warned about the second and third-order effects arising from rising inflation and high crude oil prices, which could further diminish demand over time. In response, industry organizations are collaborating with the government and advising businesses to adopt measures like energy conservation and resilience planning.
Regarding policy reforms, Goenka welcomed the proposed Jan Vishwas Bill 2026, calling it a positive step toward improving ease of doing business. He noted that this bill prevents minor compliance issues from being classified as criminal offenses, benefiting both small and large enterprises.
He further stated that this reform would alleviate the burden of minor cases on the judicial system, allowing courts to focus on more significant matters.
Considering the RBI’s monetary policy decisions, Goenka mentioned that the likelihood of interest rate cuts is low due to persistent inflationary pressures.
He believes the central bank will maintain the status quo on interest rates while closely monitoring inflation and global developments.
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My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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