The cut in the repo rate from 7.25% to 6.75% could "spur economic growth, attract investments and is a big boost for economic activities" said Suzlon's group chairman Tulsi Tanti.
The repo rate is the rate at which the central bank lends money to commercial banks.
"This will act as a catalyst and improve the investor sentiments driving demand thereon. The corporate sector will be encouraged to make strategic investments and this will positively impact demand across industries," he said.
The RBI said: "Manufacturing [in India] has exhibited uneven growth in April-July, with industrial activity slowing sequentially in July, although it has been in expansionary mode for the ninth month in succession."
Tanti continued: "The concrete steps from RBI on the financing front and the conducive policy environment for renewable energy adds momentum to the growing demand for renewables. The rate cut will drive investments into renewables and thereby aid in providing affordable and sustainable energy for all.
"It will have immense positive impact on renewable energy, as finance cost is the major operational cost for the sector. For the wind energy, the announcement will also enable IPPs to refinance the duly constructed projects at very attractive interest rates," Tanti added.
India recently moved up to third in the Ernst and Young renewable investment attractiveness index behind just the US and China.
"China may also soon find its status as Asia's resident index leader challenged by India, which moves up to third place this issue ahead of Germany. While a significant number of challenges still stand in the way of India achieving its ambitious 175GW renewables target by 2022, the Government is being relentless in rolling out policy measures to increase the country's attractiveness," EY said in its report.