SBI Chairman CS Setty said an RBI rate pause would help stabilise growth, while noting that companies have not yet pulled back on capex plans despite the West Asia conflict.
June 3, 2026 18:32 IST
State Bank of India Chairman CS Setty on Wednesday said that a pause in the policy rates by the Reserve Bank of India’s monetary policy committee would help stabilise conditions and support economic growth.
“Broadly, the market expects that there could be a rate pause at this juncture. Inflation dynamics remain important, but I think a pause would definitely help stabilise conditions and ensure smooth growth,” Setty said at the Citi India Conference 2026. The three-day MPC meeting will announce their outcome on June 5.
Broader economic opportunity
Emphasising the broader economic opportunity, Setty urged investors to focus on India’s structural growth story rather than short-term market fluctuations. Setty also said that companies have not yet pulled back on capital expenditure (capex) plans despite the ongoing conflict in West Asia, though the impact on investment decisions may become clearer over the next three to six months.
“We have not seen anyone pulling back on capex. We’ll have to see maybe three, four months or six months later how the new capex plans come into force.” The comments come even as businesses brace for potential disruptions from higher energy prices, supply chain challenges and global economic uncertainty arising from geopolitical tensions.
ALSO READ
Setty added that India would require incremental investments of nearly Rs 200 lakh crore by 2030 and another Rs 450 lakh crore by 2035 across infrastructure, manufacturing, energy transition, urban development, MSMEs and innovation to achieve its long-term development goals.
“The scale of financing required over the coming decades will be unprecedented,” he said, adding that banks would play a central role in funding India’s growth ambitions as the country works towards becoming a developed economy by 2047.
According to Setty, investment activity remains strong across sectors such as renewable energy, roads, data centres and manufacturing. He also pointed to growing interest in electronics manufacturing, semiconductors and electric mobility.
ALSO READ
On artificial intelligence, he said India is likely to emerge as one of the world’s largest adopters of the technology, particularly in financial services. While concerns persist about AI-led job losses, Setty argued that the more immediate challenge is the availability of skilled talent required to deploy AI solutions.
This article was first uploaded on June three, twenty twenty-six, at thirty-two minutes past six in the evening.
© IE Online Media Services (P) Ltd
aniltikotekar4sme.com 