Authors: Ms. Payal Varma, Dr. Sabir Nasir Mujawar
Abstract: In early 2025, the Reserve Bank of India (RBI) undertook an aggressive monetary easing strategy to counter subdued economic growth and global uncertainty. This study analyzes the sectoral transmission of the RBI’s policy through detailed assessments of banking, real estate, automotive, MSMEs, rural economy, and financial markets. The paper investigates how reductions in the repo rate, CRR, and enhanced liquidity influenced credit growth, investment, and inflation control across income groups and regions. While the easing policies stimulated credit-fueled growth and improved liquidity conditions, asymmetries in transmission, credit risks, and the threat of inflationary rebound remain critical challenges. This research combines real-time data with a comparative lens to draw insights into the efficacy, risks, and social implications of India's accommodative monetary approach in 2025.
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