New Delhi, Dec. 5 -- Industry associations have hailed the RBI's 25-basis-point cut in the policy repo rate to 5.25 per cent as a timely measure to enhance liquidity and ease borrowing costs for businesses and MSMEs.

The Federation of Indian Micro and Small & Medium Enterprises (FISME) stated in a communique, "If transmitted promptly by banks to borrowers, the rate cut will be especially beneficial for smaller firms with tight cash flows, easing working capital, inventory, vendor payments, and expansion costs."

With the latest cut, the RBI has cumulatively reduced key lending rate by 125 basis points this year.

The Confederation of Indian Textile Industry (CITI) also welcomed the rate reduction while hoping that it will be transmitted ...