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Informist, Tuesday, Feb. 24, 2026

 

NEW DELHI – India's economy has several characteristics that assure its GDP growth outpaces peers, Reserve Bank of India Deputy Governor Poonam Gupta said. Gupta, a prominent economist before taking over as deputy governor, was speaking on the last four decades of India's growth at the Centre for Development Studies in Thiruvananthapuram Friday.

 

"The Indian economy, with its macroeconomic stability, policy consistency, a large and diversified demand base consisting of domestic consumption as well as exports, and a diversified production base is assured of a continuously improving economic trajectory," Gupta said in the speech uploaded on the RBI website Tuesday. "This is in contrast to a more modest economic promise of most other Emerging and Developing Economies, for they lack one or more of these enabling factors."

 

The deputy governor's analysis found that India's GDP growth has been accelerating slowly over the past four decades. India's 10-year rolling growth rate has been rising and compares favourably with outcomes in major emerging economies including Russia, Brazil and Indonesia, among others, Gupta said. India's GDP made up nearly 3.5% of world GDP in nominal dollar terms in 2024, nearly doubling from 2008.

 

Moreover, India's economy has witnessed a cycle of accelerated growth and macroeconomic stability. India's inflation differential with advanced economies has fallen, its quality of public spending has improved and current account deficit has remained modest in recent years, Gupta said. The general government debt and deficit levels have also improved post the COVID-19 pandemic, unlike both advanced and emerging market economies, she said. The Centre's fiscal deficit has fallen from 9.5% in 2020-21 (Apr-Mar) to 4.4% in the current fiscal year, according to the revised estimate presented in the FY27 Union Budget.

 

Domestic economic outcomes have also become more predictable, as seen with the lower volatility in CPI inflation and the agriculural sector's resilience to changes in rainfall. India is also more insulated to a rise in global oil prices as the "oil intensity" of the economy has reduced, the RBI deputy governor said. In FY25, India consumed only 400 barrels of oil per billion dollars of GDP, down from 600 barrels a decade ago. The real economy has also been better shielded by the regulator and the government in recent years from financial market volatility, she said.

 

"Finally, despite implementing prudent policy frameworks, emerging market economies remain susceptible to reversals of external capital flows for reasons beyond their control or due to global policy uncertainty, the kind we have been witnessing since the past year," Gupta said. "Leveraging past experiences, and using the cushions built during quiet times, the government and the RBI now respond promptly to these shocks."  End

 

Reported by Aaryan Khanna

Edited by Akul Nishant Akhoury

 

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