In a significant development for the Indian economy, the Reserve Bank of India (RBI) has announced a cut 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 and boost investment. This decision comes in the wake of a slowdown in various sectors of the economy, including automobile sales and manufacturing. The reduction in the repo rate is aimed at making borrowing cheaper for businesses and consumers, which in turn is expected to increase spending and investment. The RBI’s Monetary Policy Committee (MPC) also changed its stance to “accommodative,” indicating a willingness to further ease monetary policy if needed to support growth. The repo rate cut is likely to have a positive impact on sectors such as real estate, auto, and consumer goods, as lower interest rates could lead to increased consumer spending and demand. However, some experts have raised concerns about the impact of the rate cut on inflation, which has been inching up in recent months. Overall, the RBI’s decision is seen as a proactive measure to address the current economic challenges faced by India. The move is expected to provide a much-needed impetus to the economy and could mark the beginning of a new phase of growth and development.