Finance Minister Nirmala Sitharaman emphasized that the synchronized efforts of fiscal and monetary policy will provide a stronger boost to India’s economic growth, following the Reserve Bank of India’s (RBI) much-anticipated interest rate cut.
Speaking to the media after addressing the RBI’s central board in the capital, FM Sitharaman expressed confidence that the latest monetary policy move, in conjunction with the government’s Budget-driven stimulus, will reinvigorate the economy.
The government, she noted, expects the prolonged sluggishness in private investments to reverse, citing industry feedback post-Budget. The Budget had introduced income tax breaks amounting to ₹1 lakh crore to revive urban demand. According to the Finance Minister, industry leaders have reported early signs of a consumption rebound and are reassessing their production capacities.
Whether it is inflation or growth, monetary policy and fiscal policy moving in tandem, like the two wheels of a car, will definitely provide more benefit to our economy and our people. With RBI’s decision on Friday, I am sure that together, things can move in the required direction that we need, she stated.
The RBI’s latest rate cut aims to lower borrowing costs, further supporting the government’s push for investment-led growth. Economists believe the combined impact of easier credit and higher disposable incomes could accelerate India’s economic recovery.
With both policy levers working in alignment, the coming months will be crucial in determining how effectively these measures translate into tangible growth and investment momentum.
