New Delhi, April 7 (SocialNews.XYZ) A rate cut in this environment will be fairly difficult because of inflation pressures, so the RBI may stay at current rate levels, Anant Goenka, President of FICCI, said on Tuesday.
Speaking to IANS on the sideline of an event, he noted that the ongoing geopolitical crisis “has had several adverse impacts in the form of logistics, cost increases, demand slowdown and long-term uncertainty” for Indian industry.
"Industry is grappling with rising uncertainty as global geopolitical tensions continue to disrupt business operations," Goenka said.
He said companies are facing challenges on a day-to-day basis, as the evolving nature of the conflict makes it difficult to predict outcomes or plan ahead.
"The crisis has affected multiple aspects of business, including logistics disruptions, rising input costs, and weakening demand," Goenka told IANS.
He added that long-term uncertainty is also weighing on investment decisions and overall business sentiment.
A key concern for companies is maintaining business continuity. "Firms are focusing on ensuring that factories continue to operate despite supply chain disruptions," he said.
"Even minor shortages, such as the unavailability of packaging materials, can halt production and delay deliveries, creating cascading effects across industries," he told IANS.
He also warned of second- and third-order impacts, particularly from rising inflation and higher crude oil prices, which could further dampen demand over time. In response, industry bodies are working closely with the government and advising businesses to adopt measures such as energy conservation and resilience planning.
On policy reforms, Goenka welcomed the proposed Jan Vishwas Bill 2026, calling it a positive step toward improving the ease of doing business. He said the bill reduces the criminalisation of minor compliance issues, which will benefit both small and large enterprises.
He added that the reform would also ease pressure on the judicial system by reducing the burden of minor cases, allowing courts to focus on more significant matters.
Looking ahead to the monetary policy decision by the Reserve Bank of India, Goenka said a rate cut appears unlikely in the current environment due to persistent inflationary pressures.
He expects the central bank to maintain status quo on interest rates, while closely monitoring inflation and global developments.
Source: IANS
About Gopi
Gopi Adusumilli is a Programmer. He is the editor of SocialNews.XYZ and President of AGK Fire Inc.
He enjoys designing websites, developing mobile applications and publishing news articles on current events from various authenticated news sources.
When it comes to writing he likes to write about current world politics and Indian Movies. His future plans include developing SocialNews.XYZ into a News website that has no bias or judgment towards any.
He can be reached at gopi@socialnews.xyz