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 to 5.15%. This move is aimed at boosting the country’s economic growth amidst a global economic slowdown. The repo rate is the rate at which the RBI lends money to commercial banks. A reduction in the repo rate makes borrowing cheaper for banks, which in turn can lead to lower interest rates for consumers. This decision by the RBI comes in the wake of several key indicators pointing towards a slowdown in the Indian economy, including a slump in consumer demand and a decline in industrial production. By lowering the repo rate, the RBI hopes to stimulate economic activity and encourage investment. The central bank also revised its GDP growth forecast for the current fiscal year downwards to 6.1% from the earlier estimate of 6.9%. In addition to the repo rate cut, the RBI also announced measures to improve liquidity in the financial system by reducing the cash reserve ratio for banks. This move is expected to inject more liquidity into the market and ease credit conditions. The RBI’s decision has been welcomed by industry experts and is seen as a positive step towards reviving growth in the Indian economy. The government has also announced a series of measures in recent weeks to boost economic activity, including a reduction in the corporate tax rate. Overall, these steps are aimed at addressing the current economic challenges and setting the stage for a more robust growth trajectory in the future.