1 week ago
RBI Deputy Governor Says India Growth May Beat Forecast
India’s central bank currently expects the economy to grow by 6.7% this fiscal year.
RBI Deputy Governor Poonam Gupta said growth could be even higher.
She based this view on recent economic data and other analyses.
She said India has stayed strong despite expensive oil, tariff problems and uncertainty around the world.
A possible shortage of rainfall could still create a challenge.
Gupta said India’s external financial position may improve.
She also said 7.5% growth could be possible in future years.
Compared with advanced economies, India’s debt-to-GDP ratio is expected to decline, according to figures she cited from the IMF.
RBI Deputy Governor Poonam Gupta said India’s GDP growth could exceed the RBI’s 6.7% forecast for the current fiscal year.
Gupta cited high-frequency indicators and economic analysis as reasons for her positive outlook.
She said the economy remained resilient despite oil and tariff challenges, global uncertainty and possible rainfall deficits.
Gupta said 7.5% growth should be considered achievable in the coming years.
She also projected improving balance-of-payments conditions and a declining debt-to-GDP ratio for India relative to advanced economies.
- Who
- RBI Deputy Governor Poonam Gupta.
- What
- Gupta said India’s GDP growth could exceed the RBI’s 6.7% forecast and that 7.5% growth is achievable going forward.
- Where
- At the Madras School of Economics.
- When
- The comments were made on Thursday; the article does not provide a calendar date.
- Why
- She cited resilient economic activity, high-frequency indicators, economic analysis and an improving external-sector outlook.
Key facts
- RBI growth forecast
- 6.7% for the current fiscal year
- Potential future growth
- 7.5% described as achievable going forward
- Economic challenges
- Oil and tariff-related pressures, global uncertainty and possible rainfall deficits
- External outlook
- Balance-of-payments conditions are expected to become more conducive
- Advanced-economy debt ratio
- Projected by the IMF to rise from 108% in 2026 to 115% in 2031
- India debt-to-GDP ratio
- Projected by the IMF to decline from 83% to 78% over the same period
Sources
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