India's Economic Resilience: Paving the Path to an Emerged Market Status

Deputy Governor Poonam Gupta highlights India's sustained economic reforms, resilience, and effective policy frameworks as it transitions towards an emerged market status. Improved fiscal practices, monetary policy, and economic tenacity boost growth prospects, while challenges like protectionism pose threats to global trade and domestic growth benefits.

India is poised to transition from an emerging to an emerged market in the coming years, thanks to sustained economic reforms and resilience, according to Reserve Bank Deputy Governor Poonam Gupta. Speaking at the Business Standard BFSI Insight Summit, she highlighted the evolution of India's policy frameworks as a key factor in this transition.

Gupta emphasized the shift from a regulated to a market-driven exchange rate and India's robust external account management. She noted the strength of India's diversified balance of payments, with services exports and remittances balancing the merchandise trade deficit, even as oil prices no longer hamper growth significantly.

While highlighting fiscal discipline and monetary policy reforms, Gupta also warned of the global trade threats posed by rising protectionism, which could reduce growth contributions and technology transfer benefits. Nevertheless, India remains focused on reform-driven productivity and financial improvements, Gupta concluded.

(With inputs from agencies.)