In a recent update on the Indian economy, the Reserve Bank of India (RBI) has announced a decrease in the repo rate by 25 basis points. This decision was made in the wake of the ongoing COVID-19 pandemic to provide relief to businesses and individuals facing financial challenges. The repo rate now stands at 5.75%, which is expected to stimulate economic growth by making borrowing cheaper for consumers. This move comes as a part of RBI’s efforts to boost the economy and increase liquidity in the market. The decreased repo rate is also likely to have a positive impact on sectors such as real estate and automotive, as lower interest rates encourage spending and investments. Additionally, the RBI has revised its GDP growth forecast for the current fiscal year to 7.2%, up from the previous estimate of 7.0%. The central bank’s decision is seen as a proactive measure to support economic recovery and stabilize the financial situation in the country. Industry experts are optimistic about the potential benefits of the rate cut and are hopeful that it will lead to increased consumer spending and business investments. As India continues to navigate through the challenges posed by the pandemic, the RBI’s latest policy measures are aimed at providing much-needed support to the economy and promoting growth in key sectors.