Archive · 24 Sep 2026
RBI Deputy Governor Flags Disconnect Between Strong Economy, Weak Markets
Poonam Gupta, a senior official at India’s central bank, discussed the country’s economy.
She said India’s financial system is stable and strong.
However, different financial markets are not showing the same confidence.
The bond market has done well compared with its past performance and with markets in many other countries.
Gupta linked this strength partly to the government’s fiscal commitment.
The stock market has not shown the same optimism.
She suggested that investors may be more excited by artificial-intelligence-related opportunities in other economies.
Gupta said the strong economy should eventually be reflected more clearly in financial markets.
RBI Deputy Governor Poonam Gupta said India’s financial sector remains stable and resilient.
She said financial markets have not uniformly reflected the economy’s near- and medium-term prospects.
Gupta said India’s bond market has performed well domestically and compared with most other countries.
She attributed the bond market’s relative strength partly to the government’s fiscal commitment.
Gupta said equity markets may be weaker because of more promising AI-led stories in other economies, but expected the disconnect to correct.
- Who
- Poonam Gupta, Deputy Governor of the Reserve Bank of India.
- What
- She said India’s strong real economy and financial markets, particularly equities, are showing a disconnect.
- When
- At an SBI conclave; the articles do not specify a date.
- Where
- At an SBI conclave.
- Why
- Gupta said equity markets may be less optimistic because of more promising AI-led stories in other economies, while the underlying economy remains strong.
- Speaker
- Poonam Gupta, Deputy Governor of the Reserve Bank of India
- Financial-sector assessment
- Stable and resilient
- Best-performing market
- The bond market
- Equity-market assessment
- Equity markets have not tracked the economy’s optimism
- Bond-market support
- The government’s fiscal commitment
- Possible explanation
- Investor interest in AI-led stories in other economies
- Expected development
- The disconnect should hopefully correct as economic strength appears in markets