The Federation of Indian Export Organisations (FIEO) today welcomed the Reserve Bank of India’s decision to reduce the repo rate by 25 basis points, calling it a timely and encouraging step that will ease liquidity pressures and strengthen export competitiveness. FIEO said the move comes at a crucial moment as exporters continue to face volatile global demand and unpredictable input costs.
On the occasion, FIEO President S C Ralhan said the rate cut will lower borrowing costs and enable exporters to invest more freely in working capital, technology upgrades and international marketing efforts. He noted that improved access to affordable credit will particularly benefit MSMEs by strengthening cash flows, supporting higher production levels and enabling diversification into new markets.
The organisation added that reduced financing costs for pre- and post-shipment credit will streamline working capital cycles, improve order fulfilment and encourage expansion and modernisation across export sectors. It said these ripple effects will advance the government’s broader export-promotion goals and help build a more resilient export ecosystem.
