The Reserve Bank of India has taken a markedly accommodative turn in recent months, unveiling a flurry of measures reminiscent of its pandemic-era playbook. Since December, it has slashed the repo rate by 100 basis points to 5.50% and lowered the Cash Reserve Ratio by 100 basis points. Together, these moves inject an estimated ₹13.16 trillion into the system—equivalent to 5.7% of banking deposits—underscoring deep concerns about the durability of India’s growth trajectory, despite headline GDP growth of 7.4% in the January–March quarter.This frontloading of monetary stimulus is designed to jolt private investment and household consumption back to life. Yet the Reserve Bank has already signalled limited room for further easing, hinting that much of its conventional policy arsenal may have been exhausted. The urgency of these moves betrays unease about the sustainability of current growth trends and a desire to insulate the economy from global disinflationary forces and domestic demand weakness.
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