Advertisement
What really powers the cloud? Behind every Google search, A...
A lot of what defines a home isn’t visible at handover. I...
Private equity has played a significant role in shaping Indi...
Luxury real estate is one of the most talked-about segments ...
Airports play a much bigger role than just enabling travel -...
Industry body ASSOCHAM has stated that India is better positioned to manage retail inflation compared to other top 10 global economies, even as West Asia tensions continue to disrupt global energy markets. It has recommended that the Reserve Bank of India maintain the repo rate in its upcoming June monetary policy review while supporting MSMEs through liquidity, interest subvention and moratorium measures. ASSOCHAM noted India’s inflation rose marginally from 3.2 per cent in February 2026 to 3.5 per cent in April 2026, remaining significantly lower than sharper increases seen in the US during the same period.
Industry body ASSOCHAM has said that India remains better positioned to manage retail inflation compared to other major global economies, including the top 10 largest economies, despite ongoing geopolitical disruptions arising from the West Asia conflict and associated energy price volatility. Advertisement
According to an analysis released by ASSOCHAM on Friday in New Delhi, India’s retail inflation has remained relatively stable, rising from 3.2 per cent in February 2026 to 3.5 per cent in April 2026, marking an increase of 0.3 percentage points. In contrast, the United States witnessed a sharper rise in inflation during the same period, increasing from 2.4 per cent to 3.8 per cent, reflecting a 1.4 percentage-point jump.
Based on this comparative assessment, ASSOCHAM has urged the Reserve Bank of India (RBI) to maintain the current repo rate in its forthcoming monetary policy review scheduled for early June 2026. The industry body stated that prevailing inflation conditions remain broadly benign in India and do not warrant immediate monetary tightening.
ASSOCHAM President Nirmal Kumar Minda stated that while a marginal increase in headline inflation cannot be ruled out due to recent rises in global energy prices, the impact is expected to be temporary. He noted that inflation is likely to return to a stable trajectory once external pressures ease.
He further argued that any upward revision in the repo rate at this stage could adversely impact business sentiment and dampen domestic demand. According to him, maintaining policy stability is essential to support ongoing economic recovery, particularly for manufacturing and consumption-driven sectors.
The industry body also recommended targeted support measures for export-oriented and energy-intensive micro, small and medium enterprises (MSMEs). These measures include liquidity support, interest subvention and moratorium facilities, which ASSOCHAM believes would help mitigate the impact of global volatility on vulnerable sectors.
In addition, ASSOCHAM welcomed the Reserve Bank’s decision to conduct a USD 5 billion USD/INR buy-sell swap auction scheduled for May 26. The industry body stated that the move is expected to inject long-term liquidity into the banking system while also strengthening foreign exchange reserves.
According to the analysis, such liquidity measures will help stabilise currency fluctuations amid global uncertainties, including geopolitical tensions and oil price shocks that have recently influenced rupee movement. ASSOCHAM added that these interventions are important for managing liquidity conditions and maintaining stability in the foreign exchange market.
Overall, the industry body emphasised that India’s macroeconomic indicators remain relatively resilient in comparison to global peers, and advocated a cautious and stability-oriented monetary policy approach in the upcoming RBI review.
Source - PTI
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
