Barclays calls RBI's latest measures a ‘mini-budget' despite rate hold

Core Insights - The Reserve Bank of India (RBI) has implemented 22 measures aimed at loosening restrictions on bank lending for acquisitions and increasing capital allocation for IPO support, which is seen as a pragmatic approach to support the economy rather than merely cutting rates [1][4][3] - These measures are designed to enhance the flow of credit to both banks and non-banking financial companies (NBFCs), addressing the evolving capital structure needs of the economy [3][7] - The RBI's actions, combined with GST cuts, reflect a strategy to bolster domestic demand and private investment, positioning India to navigate global economic challenges [5][6][7] Economic Context - Approximately 60% of India's GDP is driven by private demand, indicating a reliance on domestic consumption amidst global economic uncertainties [6] - The RBI has revised its growth forecast for the financial year 2026 to 6.8%, up from 6.5% previously, highlighting a positive outlook for the Indian economy despite global challenges [8]