CDS Foundation Day : 20 Feb 2026
India’s Economy Stronger, Steadier Than Ever, Says RBI Economist
India has entered a new phase of economic maturity – faster growth, lower inflation, and far fewer shocks – according to a lecture delivered by RBI’s Deputy Governor, Poonam Gupta at the Centre for Development Studies, Trivandrum, on Friday. Prof C.Veeramani, Director, CDS presided over the function.
Gupta’s data tells a striking story: average decadal GDP growth has climbed from 5.7% in the 1980s to 7.7% in the post-COVID years, while India’s share of world GDP has more than doubled to 3.5%. 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, Gupta argued, is not just the growth itself but its growing stability. GDP volatility has declined decade after decade. Even agriculture, long at the mercy of monsoons, has become more resilient. The economy’s oil dependency has halved since 2000.
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 – a sign of improving quality, not just quantity.
“India is somewhat unique,” Gupta concluded, in having achieved a self-reinforcing cycle of growth and macroeconomic stability – one that bodes well for its ambition to become a developed nation by 2047.
Dr. Gupta presented the meritorious awards of the CDS to the students. The Joan Robinson Prize for the best overall performance in the M.A. Applied Economics Programme (2023–25) was awarded to Ms. Ponnu Bimal and Mr. Mohammed Sinan A. The M. G. Kanbur Prize for the best performance in the Quantitative Courses of the M.A. Applied Economics Programme (2023–25) was awarded to Ms. Ponnu Bimal. The A. D. Neelakantan Prize for securing the highest grade point average in the coursework component of the Ph.D. Programme 2023, and the Chandrika Sharma Prize for splendid performance in the statistical survey report submitted as part of the Ph.D. Programme 2023, were awarded to Mr. Manish.
