RBI Deputy Governor Projects Indian Rupee Stabilization and Appreciation

Reserve Bank of India Deputy Governor Poonam Gupta stated that the Indian rupee has a strong case to stabilize and potentially appreciate from current levels. Speaking at the SBI Banking and Economics Conclave in Mumbai, Gupta noted that the rupee depreciated by 13.1 percent between March 31, 2025, and September 16, 2026.

Gupta argued that current market dynamics are not well-founded because the Reserve Bank of India remains committed to ensuring orderly foreign exchange conditions and possesses the resources to meet decades of current account deficit. While oil and gold price shocks led to a negative balance of payment of $23.6 billion in 2025-26, she expects the deficit to shrink as merchandise and services exports grow and dependence on imported oil declines.

Beyond currency stability, Gupta projected that India is advancing toward a broad-based growth equilibrium of over 7%, with a long-term goal of exceeding 8%. She acknowledged a current disconnect between the real economy and the equity market, attributing the market's mood to AI-led growth in other economies, but maintained that Indian equities will regain attractiveness over time.