NEW DELHI, Dec 5:
The RBI decision to cut interest rate by 25 basis points, along with recent GST reforms, would further lead to the automobile industry’s growth by enhancing affordability and accessibility for consumers, industry body SIAM said on Friday.
The 25 bps rate cut announced on Friday by the Reserve Bank, along with earlier repo rate reductions, reinforces a supportive monetary environment for boosting consumer sentiment in the country, Society of Indian Automobile Manufacturers (SIAM) President Shailesh Chandra said in a statement.
“Coupled with the income-tax relief measures announced in the Union Budget 2025-26 and the landmark GST 2.0 reforms, this creates strong enablers for further enhancing affordability and accessibility,” he added.
SIAM remains optimistic that this alignment of monetary and fiscal measures will further accelerate the growth of the Indian Auto industry, Chandra said.
Shrugging off concerns over the depreciation of the Indian rupee, the RBI on Friday cut the interest rate by 25 basis points to 5.25 per cent in a bid to further bolster economic growth, which rose to a six-quarter high of 8.2 per cent in the second quarter of the current financial year.
The development is expected to make advances, including housing, auto and commercial loans cheaper. (PTI)
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