Indian economy steadier than ever: RBI Deputy Governor Poonam Gupta

India has entered a new phase of economic maturity with faster growth, lower inflation and far fewer shocks, according to Poonam Gupta, Deputy Governor, Reserve Bank of India (RBI).

Dr. Gupta was delivering the CDS Foundation Day lecture on ‘Perspectives on India’s growth: Last four decades to the present’ here on Friday (February 20, 2026). The average decadal GDP growth has climbed from 5.7% in the 1980s to 7.7% in the post-COVID-19 years, while India’s share of world GDP has more than doubled to 3.5%, she was quoted as saying in a statement issued by CDS.

Inflation, once a chronic double-digit problem, now hovers near 5%. Bank bad loans have fallen to just 2.1% – among the lowest in emerging Asia.

What sets India apart, Dr. Gupta said, is not just the growth itself but its growing stability. On the fiscal front, post-pandemic debt and deficits are on a downward path, and capital spending now accounts for nearly 20% of government expenditure, which is a sign of improving quality, not just quantity.

Dr. Gupta presented the meritorious awards of the CDS to the students on the occasion. C. Veeramani, Director, CDS, presided over the function.