In response to global economic uncertainties, the Reserve Bank of India (RBI) has taken measures to stimulate growth by reducing the repo rate to 6.5% and adopting an accommodative stance. This move indicates the possibility of further rate cuts in the future. The RBI’s decision comes in light of trade tariffs impacting the global economy. Despite aiming for a growth-supportive monetary policy, the central bank has acknowledged challenges ahead. As a result, the RBI has revised GDP growth projections for the fiscal year 2025-26 to 6.5%. This adjustment reflects the cautious approach taken by the RBI to navigate the current economic landscape. The rate cut is expected to provide a boost to various sectors in the Indian economy, including manufacturing and consumer spending. It is also likely to ease borrowing costs for businesses and individuals, ultimately helping to spur economic growth. The RBI’s proactive stance in addressing economic challenges is a positive step towards stabilizing and strengthening the Indian economy in the face of global headwinds.