In a significant development for the Indian economy, the Reserve Bank of India (RBI) has announced a reduction in the repo rate by 25 basis points. The repo rate now stands at 5.75%, a move that is expected to stimulate economic growth by making borrowing cheaper for businesses and consumers. This decision comes in the wake of declining GDP growth and subdued inflation rates in the country. The RBI’s Monetary Policy Committee (MPC) made this decision in its bi-monthly meeting, taking into consideration the need to boost investment and consumption. The reduction in the repo rate is likely to have a positive impact on sectors such as real estate, auto, and manufacturing, as lower interest rates could lead to increased spending and investment. The RBI also revised its GDP growth forecast for the current fiscal year downwards to 7%, from the earlier projection of 7.2%. This move is seen as a proactive measure to address the economic slowdown and provide a much-needed impetus to various sectors. The reduction in the repo rate is expected to benefit borrowers, as banks are likely to pass on the rate cut to their customers. This decision is also in line with the government’s efforts to boost economic growth and create a favorable environment for businesses in India. As the country faces various economic challenges, the RBI’s decision to lower the repo rate is seen as a step in the right direction to stimulate growth and investment in the economy.