- India maintains a sustainable growth rate above 7%, driven by diverse sectors and regions
- GDP growth hit 7.8% last quarter despite global challenges and oil price volatility
- RBI Deputy Governor highlights a disconnect between real economy and financial markets
India is maintaining a strong sustainable growth rate of over 7%, supported by growth across regions and sectors and rising productivity, however there remains a disconnect in financial markets, according to RBI Deputy Governor Poonam Gupta.
The country's GDP growth soared to 7.8% in the last quarter, despite the global headwinds and oil price volatility.
Referring to the real economic growth at the 13th SBI Banking & Economics Conclave on September 23, 2026, RBI Deputy Governor said, "There does remain some disconnect between this real economy narrative and parts of the financial 'markets, attributable in good measure to the pull of short-term returns in competing markets."
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Gupta, however, expects that this disconnect to correct soon with easing geopolitcal tensions as no oil price crisis lasted for eternity and valuations are likely to become attractive again.
"This should however correct soon: as the shocks dissipate, for no oil price shock has lasted forever; and as the relative valuations turn competitive again," she said.
According to Gupta, it is hard to predict how long the correction may take but the longer the disconnect continues, the higher the odds that the course correction is on its way.
The Deputy Governor further remarked India is working towards achieving a growth rate of over 8%, a notable achievement for a large emerging economy.
"India is advancing ahead on a resilient growth equilibrium of 7 percent plus, that is spatially broad-based; sectorally diversified; and underpinned by rising productivity, while steadily working to break into a 8 percent plus equilibrium. This is quite a feat for a large emerging market, and makes India stand out in its asset class," she said.
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