ACE CFO hails RBI decision repo rate cut

Reacting to RBI decision to cut repo rate, Rajan Luthra, CFO, Action Construction Equipment (ACE) Ltd said RBI’s decisive move to cut the repo rate by 50 basis points to 5.50% and shift its policy stance from ‘accommodative’ to ‘neutral’ is a clear reflection of a balanced approach that prioritises both inflation control and economic momentum.

He said the phased reduction of the CRR from 4% to 3% is equally significant, as it will infuse substantial liquidity into the banking system, improving credit access for capital-intensive sectors like infrastructure and construction.

Luthra said at a time when global uncertainties and geopolitical tensions continue to exert pressure on external trade and investment flows, the RBI’s clear emphasis on indigenous manufacturing is both timely and reassuring.

"This renewed thrust adds to ACE’s confidence in India’s growth strategy. For the construction equipment industry, these measures pave the way for faster project execution, improved cash flows, and stronger appetite for innovation and mechanization. At ACE, we view this not just as a policy shift, but as a significant growth catalyst, energizing indigenous manufacturing, boosting infrastructure momentum, and powering India’s vision of a self-reliant, future-ready economy," he remarked.