Respected economist and erstwhile World Bank and IMF official Poonam Gupta becomes RBI’s Deputy Governor, bringing in international know-how to India’s economy.
In a significant development, the Indian government has appointed renowned economist Poonam Gupta as the new Deputy Governor of the Reserve Bank of India (RBI) for a three-year term. With decades of experience in international finance and economic policymaking, Gupta’s appointment comes at a crucial time, just days before the RBI’s Monetary Policy Committee (MPC) meeting scheduled for April 7-9.
डॉ. पूनम गुप्ता को उप गवर्नर, भारतीय रिज़र्व बैंक के रूप में नियुक्त किया गया
Dr. Poonam Gupta appointed as Deputy Governor, Reserve Bank of Indiahttps://t.co/2CuOLyVJ2N— ReserveBankOfIndia (@RBI) April 3, 2025
Presently, she is the Director General of the National Council of Applied Economic Research (NCAER), a prominent economic policy think tank. She succeeds Michael Patra, a seasoned central banker who was the Deputy Governor from January 2020 to January 2025.
Who is Poonam Gupta? A Look at Her Journey
Poonam Gupta has significant experience in economic policy, international finance, and macroeconomic stability. She has headed research on central banking, public debt, economic growth, and state finances as the director of NCAER. Her background in these fields makes her an important figure in advising India’s financial policies at the RBI.
Before joining NCAER in 2021, Gupta served in senior positions at the International Monetary Fund (IMF) and the World Bank for almost two decades. While working in Washington, DC, she worked on economic policies for emerging markets, developing a profound understanding of global finance. She has also been a part of government advisory committees in India, being a member of the Economic Advisory Council to the Prime Minister and convener of the Advisory Council to the 16th Finance Commission.
Her work also included India’s G20 Presidency, where she was the chairperson of the Task Force on Macroeconomics and Trade.
Academic and Research Contributions
Gupta’s academic experience is also of a high caliber. She has worked at top-ranking institutions like the Delhi School of Economics and the University of Maryland (USA) and was a visiting faculty at the Indian Statistical Institute (ISI), Delhi. She has also served in leadership roles as RBI Chair Professor at the National Institute of Public Finance and Policy (NIPFP) and the Indian Council for Research on International Economic Relations (ICRIER).
A prolific writer, Gupta has published close to 50 research papers, several of which have appeared in leading international journals such as The Economist, The Financial Times, and The Wall Street Journal. She co-authored a book on India and China with economist Barry Eichengreen and was awarded the EXIM Bank award in 1998 for her research acumen.
Poonam Gupta is academically qualified with a PhD in Economics, majoring in macroeconomics, international finance, and trade. She also has a dual master’s degree in Economics from the University of Maryland and Delhi School of Economics, as well as a bachelor’s degree from Hindu College, University of Delhi.
Challenges Ahead: Inflation, Economic Growth, and Policy Reforms
Gupta’s appointment occurred at a moment when India had serious economic issues. The economy, while having been estimated to have expanded 6.5% in the fiscal year ending March 31, still lags behind the 9.2% expansion seen in the last fiscal year. At the same time, inflationary pressure and geopolitical risks remain on the horizon.
She has spoken out for a re-examination of India’s inflation-targeting system. In a column after a rate reduction in February, she said, “RBI has been pursuing an old inflation figure and has frequently missed its projection by a wide margin. Inflation expectations of households have continued to be misaligned, and monetary policy transmission has not picked up sufficiently.”
In another column in March, she wrote that the RBI must not indulge in undue exchange rate volatility but that the rupee must be allowed to move more freely than previously. Her views will be important as the MPC sits next week to debate monetary policy actions.
Strengthening the RBI Leadership
With the appointment of Gupta, the RBI has four Deputy Governors, in addition to M Rajeshwar Rao, T Rabi Sankar, and Swaminathan J. Her inclusion adds a worldwide angle to the central banking system of India, as consistent with the changing financial landscape of the nation.
Her deep expertise in macroeconomics, along with her extensive research and advisory experience, makes her a formidable force in shaping India’s monetary policy. As the country embarks on economic revival, Gupta’s views will play a crucial role in tackling inflation, maintaining financial stability, and guiding growth-driven reforms.
