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India's Economic Pulse: RBI Cuts Rates Amidst Growth Debates, Rupee Pressure, and Evolving Trade Dynamics

December 09, 2025

The Reserve Bank of India (RBI) has implemented a 25 basis point repo rate cut, bringing it to 5.25%, signaling a shift towards a growth-supportive monetary policy. This decision comes as India reports robust Q2-FY26 GDP growth of 8.2% and low inflation. However, former RBI Governor Raghuram Rajan has voiced caution, questioning the sustainability of current growth rates and highlighting challenges in job creation. The Indian Rupee continues to face depreciation pressures due influenced by global factors and capital outflows. On the international front, India is actively engaging with Russia to address trade barriers and with the European Union to advance Free Trade Agreement discussions. Domestically, Andhra Pradesh has shown exceptional economic performance, surpassing the national growth average.

Question 1 of 12

1. What was the primary objective behind the Reserve Bank of India's decision to reduce the repo rate on December 8, 2025?

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