RBI Deputy Governor Poonam Gupta Says India Could Hit 8% Growth Without External Shocks

Poonam Gupta, RBI deputy governor, told a Business Standard fireside chat in Mumbai on May 28, 2026 that India would have hit an 8% growth rate if external shocks had not loomed. The RBI governor said the country’s GDP grew at 7.4% last fiscal year, short of the 8% target. She added that the global economic slowdown, supply chain bottlenecks and commodity price spikes had dented the growth trajectory. The statement came after the RBI’s quarterly review of economic resilience.

Gupta cited advances in digital infrastructure, public service digitisation, manufacturing upgrades and governance reforms as key pillars that helped the economy weather external shocks. She highlighted the rollout of BharatNet, the expansion of UPI transactions, and the implementation of the Goods and Services Tax as evidence of a more efficient system. The RBI’s data shows a 12% rise in digital payments volume over the past year.

The deputy governor warned that the real challenge is sustaining these gains and nudging growth beyond 7% amid persistent global uncertainties. A small textile firm in Jaipur reported that the surge in digital payments has cut its cash handling costs by 20%. She noted that the fiscal and monetary mix must adapt to evolving market conditions. Comments were met with cautious optimism from market analysts who see potential for a rebound.

Gupta added that a more favorable global environment could inject an extra 50 basis points to annual growth within a year, pushing India past the 8% threshold. The RBI will monitor external conditions closely and adjust policy tools accordingly. The next RBI policy review is scheduled for September 2026.