India's Economic Momentum Accelerates, Poised for Sustained Expansion
In a significant address, Reserve Bank of India (RBI) Deputy Governor Poonam Gupta declared that the Indian economy has entered a phase of accelerated growth, with a continuously improving trajectory assured for the foreseeable future. Delivering the 14th Foundation Day Lecture at the Centre for Development Studies, Gupta emphasized that India's economic expansion has become more durable, stable, and predictable in recent years.
Stable and Accelerating Growth Becomes Hallmark
"High, stable and accelerating growth, and more predictable economic outcomes have become the hallmarks of the Indian economy," Gupta stated authoritatively. She provided specific data points to underscore this acceleration, noting that "the Indian economy has slowly but surely accelerated at the pace of 0.03 percentage points a year." Even more encouraging, she highlighted that "the acceleration in per capita income growth has been even faster," signaling broad-based economic improvement that benefits citizens directly.
Strong GDP Performance in Current Fiscal Year
Supporting this optimistic assessment, a separate report from the State Bank of India's economic department projects robust growth figures. According to their analysis, the Indian economy is likely to have grown approximately 8.1% in the third quarter of the current fiscal year, based on the revised FY23 base. This follows an already impressive 8% growth recorded in the first half of the fiscal year, indicating sustained momentum across quarters.
Demographic Dividends and Policy Continuity as Growth Drivers
Looking ahead, Gupta outlined several forward-looking drivers that will anchor India's continued expansion. She pointed to favorable demographics as a fundamental strength, noting that "the working age population is likely to increase for several more decades," providing enduring demographic support for economic activities. Combined with policy continuity from the government, these factors create a powerful growth engine.
"Going by international experience, these trends are likely to continue in the years to come, aiding a rapid increase in per capita incomes," Gupta projected confidently, drawing parallels with successful economic transformations globally.
Trade Agreements to Strengthen External Position
The deputy governor also highlighted the significant role of international trade partnerships in bolstering India's economic position. She specifically mentioned that "the recently announced India-USA trade deal, India-EU free trade agreement and the newly-signed or prospective new trade agreements will further strengthen the current account." These strategic agreements are expected to enhance export opportunities, attract foreign investment, and create more balanced external trade relationships.
Gupta's comprehensive assessment paints a picture of an economy that has not only recovered from pandemic disruptions but has built structural strengths that promise sustained, high-quality growth for years to come. The combination of accelerating GDP growth, favorable demographics, policy stability, and expanding international trade partnerships positions India uniquely among major global economies.
