Finance Minister Sitharaman Hails RBI Rate Reduction, Optimistic About India-UK Trade Agreement

Unknown Apr 02, 2026 450 Views

New Delhi, April 9, 2025 – India's Finance Minister Nirmala Sitharaman has come out in favor of the Reserve Bank of India's (RBI) latest cut in interest rates, terming it as an encouraging move for the economy. Addressing a press conference, she also brought to light the government&...

New Delhi, April 9, 2025 – India's Finance Minister Nirmala Sitharaman has come out in favor of the Reserve Bank of India's (RBI) latest cut in interest rates, terming it as an encouraging move for the economy. Addressing a press conference, she also brought to light the government's enthusiasm to finalize the India-UK free trade agreement at the earliest, underlining the coordination between the government and the central bank to push economic growth.

Key Highlights:

Support for RBI Rate Cut:

The Finance Minister also appreciated the RBI decision to lower the repo rate by 25 basis points to 6%, terming it with a sense of elation, "I welcome this interest rate cut today with a sense of joy."

She did agree with the significance of collaborative action between the government and the central bank to propel economic recovery and growth.

Government-Central Bank Collaboration:

Sitharaman underlined that India is at a point where all assistance from the central bank and the government is essential to steering through global uncertainty and building domestic resilience.

The Finance Minister reaffirmed her faith in India's capacity to maintain its growth momentum through pro-active policymaking.

India-UK Trade Deal Progress

On trade, Sitharaman sounded hopeful of sealing the India-UK trade agreement, saying, "There is a great sense of positivity and dedication to conclude this agreement soon."

The trade agreement will consolidate bilateral relations, increase exports, and create new avenues for Indian industry in the UK market.

Strategic Importance:

The RBI rate cut and the continuing trade talks are consistent with India's overall strategy to boost investment, improve trade relationships, and preserve financial stability in the face of challenges from abroad.

Leadership Insights:

Finance Minister Sitharaman commented:

"The partnership between the central bank and the government is a demonstration of our mutual commitment to the economic stability and growth. The India-UK free trade agreement will further boost our global ties."

Outlook:

The RBI’s accommodative stance and progress on trade agreements are expected to drive economic recovery while strengthening India’s position in global markets.

Conclusion:

The Finance Minister’s remarks highlight India’s proactive approach to fostering economic growth through monetary easing and strategic international partnerships.

Source: Reuters; April 9, 2025.

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