Poonam Gupta: Policy frameworks for economic resilience - the case of emerging markets and India
Address by Dr Poonam Gupta, Deputy Governor of the Reserve Bank of India, at the Business Standard BFSI Insight Summit, Mumbai, 29 October 2025.
The views expressed in this speech are those of the speaker and not the view of the BIS.
It is a pleasure for me to be here at the Business Standard BFSI Insight Summit. I would like to thank the organisers for this opportunity.
In my brief comments, I will be reflecting on the observed economic and financial resilience of emerging markets (EMs) in general, and of the Indian economy, in particular. In this context, it may be noted that at the recently concluded Annual Meetings of the IMF, two contradictory themes prevailed: the unprecedented global policy uncertainty; and the surprising resilience of the economies.
The global economy has shown remarkable resilience to the shifting trade policies and geopolitical tensions. Global growth has held up better than anticipated earlier. Currently, inflation outlooks are mostly benign across countries (notwithstanding the fact that inflation levels in some advanced economies are somewhat higher than their respective targets). Low inflation has provided the headroom for monetary policies to be eased across jurisdictions. Banking sectors across countries are mostly resilient.
IMF has suggested a few factors that are contributing to this resilience. These include improved policy frameworks in EMs; the tariff outcomes being milder than what were anticipated earlier; and very limited retaliation by the partner countries. In other words, the policy making frameworks in EMs are to be credited for their own economic resilience, as well as for the resilience in the global economy. The key questions of interest, therefore, are: What has made this resilience of EMs possible? Is it here to stay? How well has India done on its policy frameworks and economic resilience?