“The 25-basis-point repo rate hike reflects the RBI’s response to rising inflationary pressures amid geopolitical tensions, crude price volatility and continuing supply-chain disruptions. For exporters and importers, the challenge extends beyond higher borrowing costs, as global disruptions can delay payments and lock up working capital, creating cash-flow constraints that can affect their ability to fund subsequent orders and pursue growth.
Digital trade finance can play an important role by enabling faster and more transparent access to liquidity against underlying trade transactions. As payment cycles become more uncertain, efficient financing infrastructure will be critical to helping businesses maintain continuity, preserve liquidity and sustain growth across cross-border supply chains.”