RBI's repo rate pause is a welcome move: EEPC India chairman

The Monetary Policy Committee’s decision to keep the policy repo rate unchanged at 6.50% is a welcome move said EEPC India chairman adding, that the consistent hike in benchmark lending rates since May last year has already made borrowing costlier. The lagged impact of these hikes is expected to be visible in growth this year, he added.

Factors like high commodity prices, trade finance challenges, supply chain issues, and monetary policy tightening have slowed down global economic growth and trade. This has resulted in subdued demand from key export markets for Indian engineering goods.

Overall, the scenario looks quite challenging for exporters right now. The engineering goods sector has been one of the worst affected by global headwinds with outward shipments registering negative growth in seven out of the first 11 months of FY23.


Considering the tough time exporting community faces, it has to be ensured that trade finance is available at a competitive rate. We have been urging the government to restore the interest equalization rate back to 5% from the current 3%.