The RBI’s decision to reduce repo rate by 50 basis points to 5.50% and CRR by 100 basis points in 4 tranches indicates a strong and timely policy shift that aligns with balancing growth with price stability. The decision in CRR cut which is expected to release INR 2.5 lakh crore in primary liquidity, will ease credit conditions in the banking system. The pickup in non-gold imports and 14% increase in gross FDI also indicate robust domestic demand and global investor confidence in India’s structural strength.