The Reserve Bank of India (RBI) announced on Thursday that it is holding its key repo rate steady, prompting CEOs from various industries to express their optimism about the business outlook and demand growth in India. The decision is expected to keep consumers’ financial burden stable and allow corporates to raise funds, while also providing stability in the home loan category.
Rajiv Agarwal, operating partner (infrastructure) at Essar and managing director of Essar Ports, said that the market anticipated the RBI’s decision and that it reflects the belief that inflation has peaked. He added that the decision is especially good news for the infrastructure industry and will improve confidence and industry sentiments.
The recent decision by the Reserve Bank of India (RBI) to maintain the status quo on key policy rates has been welcomed by the real estate sector in the country. Venkatesh Gopalkrishnan, CEO of Shapoorji Pallonji Real Estate, believes that the RBI’s decision will keep the buying sentiment in the real estate sector stable and maintain the home loan category, leading to an upsurge in the mid-segment housing category. He also believes that the demand for luxury and premium housing will remain unaffected.
However, Gopalkrishnan also acknowledged that the RBI governor has hinted that this move may only provide temporary relief and may be necessary to combat inflationary growth in the country. Therefore, it remains to be seen how long this stability in the real estate sector will last.
Vimal Nadar, head of research at Colliers India, also welcomed the RBI’s decision but pointed out that challenges in geopolitics and the resulting downside risks to growth remain. He emphasized that the next few months will be crucial in determining the course of the real estate sector in 2023. While headline inflation has been moderating, it still remains above the RBI’s target, which means it needs to be monitored closely.
Overall, the RBI’s decision has provided a sense of stability in the real estate sector, especially in the mid-segment housing category. However, the long-term impact of this move remains uncertain, and the real estate industry will need to keep a close eye on inflation and other factors that could affect growth in the coming months..
Overall, the CEOs’ comments suggest a sense of optimism about the business outlook and demand growth in India, as well as a belief that the RBI’s decision will help stabilize various sectors of the economy
