In a recent development in the Indian economy, the Reserve Bank of India (RBI) has announced a reduction in the repo rate by 25 basis points. This move is aimed at boosting economic growth and stimulating lending by commercial banks. The repo rate now stands at 5.75%, which is expected to bring relief to borrowers as it may lead to lower interest rates on loans. The decision comes in the wake of slowing economic growth and subdued inflation. The RBI has also revised its GDP growth forecast for the current fiscal year to 7%, down from the earlier projection of 7.2%. This rate cut is the third consecutive reduction by the central bank this year, indicating its commitment to supporting the economy. The RBI Governor, Shaktikanta Das, highlighted the need for structural reforms to address the current challenges faced by the economy. The reduction in repo rate is expected to have a positive impact on sectors such as real estate, automobile, and consumer goods. It is likely to encourage investment and boost consumer spending, thereby aiding in the overall economic revival. The move has been welcomed by industry experts and is seen as a step in the right direction to address the economic slowdown. The RBI’s decision is expected to have a ripple effect on the financial markets and is likely to be closely monitored by investors and policymakers.