Poonam Gupta, Deputy Governor of the Reserve Bank of India (RBI), argued that India's economic growth story is stronger than commonly perceived, with investment contributions often underestimated. Speaking at a seminar organized by the National Council of Applied Economic Research (NCAER), she noted that India's growth rate has surpassed 7% while maintaining low inflation levels, suggesting a high non-inflationary growth potential. Gupta highlighted that capacity utilization is around 75%, indicating that the economy still has room for expansion. She criticized the conventional methods of estimating potential output, advocating for a structural model that better reflects India's dynamic economic landscape. Additionally, Gupta defended the RBI's 4% inflation target with a tolerance band, asserting that it is essential for credibility and effective communication. In the same discussions, Krishna Srinivasan from the International Monetary Fund (IMF) pointed out challenges such as rising youth unemployment and the need for India to attract more foreign direct investment (FDI), which has recently stagnated. Gupta reiterated that India's prudent fiscal policy supports continued growth without the need for drastic changes.