CII sees case for rate cut; says rupee-dollar volatility a bigger worry than levels, weak currency boosting export competitiveness

As the Reserve Bank of India’s monetary policy review approaches, industry is firmly in favour of a rate cut, argues Rajiv Memani, President of the Confederation of Indian Industry (2025–26) and Regional Managing Partner, EY Africa–India region.

In an exclusive conversation with CNBC-TV18, Memani said that India’s macroeconomic conditions – including benign inflation, stable current account dynamics and healthy GDP growth – justify a reduction in interest rates, provided global and currency risks remain contained.

“If you look at the normal factors of GDP growth, inflation, fiscal deficit and global interest rate trends, one would generally look at lowering interest rates,” he said, adding that Indian interest rates continue to be 3–5 percentage points higher than those in major competin