India's Economic Growth: A Steady Ascent According to RBI Deputy Governor
Positive Economic Outlook for India
Poonam Gupta, the Deputy Governor of the Reserve Bank of India (RBI), has highlighted that the Indian economy is on a path of continuous improvement. During her address on February 24, 2026, at the 14th foundation day lecture at the Centre for Development Studies, she emphasized that India's economic journey is characterized by high, stable, and accelerating growth.
Gupta pointed out that the growth trajectory of India over the last 45 years shows a consistent pattern of acceleration without significant periods of stagnation. She remarked, “Economic growth has steadily increased,” noting that the average real GDP growth was 5.7% in the 1980s, 5.8% in the 1990s, 6.3% in the 2000s, and 6.6% in the 2010s, culminating in an average of 7.7% over the past four years, excluding the pandemic.
Regarding per capita income, she stated, “It took approximately 23 years to double per capita income from 1981; however, in the following two decades, it has nearly quintupled.” Gupta emphasized that India's growth acceleration is notable compared to other emerging markets, as a comparative analysis with seven major economies reveals no similar acceleration trends.
She also highlighted that the combination of rapid growth and macroeconomic stability has been a defining characteristic of India's economic path. “Most macroeconomic indicators have remained robust over the past four decades, with significant improvements in recent years,” she added.
Poonam Gupta on Free Trade Agreements
Gupta expressed optimism regarding the recently announced trade agreements, including the India-USA trade deal and the India-EU free trade agreement (FTA), stating that these will likely bolster the current account. She also mentioned that the government has returned to fiscal discipline post-pandemic, adhering to the Fiscal Responsibility and Budget Management framework. Gupta noted that current spending is increasingly directed towards capital expenditures, particularly in infrastructure. Despite high public debt, she reassured that it remains manageable due to strong economic growth that exceeds borrowing costs.