DELHI: The Reserve Bank of India (RBI) released its annual financial report on Thursday, showing that its balance sheet has grown to 2.5 times the size of Pakistan’s Gross Domestic Product (GDP).
The report showed that the RBI’s balance sheet size surged by 11% to Rs 70.48 lakh crore (approximately $844.76 billion) as of March 31, 2024.
Whereas, Pakistan’s GDP is estimated to be around $338.24 billion by the International Monetary Fund (IMF).
In the previous financial year (FY23), the RBI’s balance sheet stood at Rs 63.44 lakh crore.
The central bank said that its balance sheet has now normalised to pre-pandemic levels. It has increased to 24.1% of India’s GDP at the end of March 2024, up from 23.5% at the end of March 2023.
The report also highlighted that the RBI’s income rose by 17.04% in FY24, while its expenditure decreased by 56.30%. Consequently, the RBI’s surplus increased by 141.23% on an annual basis in FY24 to Rs 2.11 lakh crore.
This surplus was recently transferred to the central government. In addition to this, the RBI allocated Rs 42,820 crore towards the contingency fund in FY24.
The RBI remains optimistic about the Indian economy, stating that the outlook is bright due to sustained strengthening of macroeconomic fundamentals.
However, it also pointed out that food inflation remains a concern due to recurring supply shocks, which are hindering a quicker alignment of headline inflation with the target.
The central bank noted that the government’s ongoing emphasis on capital expenditure (capex) while pursuing fiscal consolidation, along with rising consumer and business optimism, bodes well for investment and consumption demand.
“The government’s continued thrust on capex while pursuing fiscal consolidation, and consumer and business optimism augur well for investment and consumption demand,” said RBI.
The RBI is forecasting a real GDP growth of around 7% for FY25.
The report suggested that the Indian economy is well-positioned to enhance its growth trajectory over the next decade within a stable macroeconomic and financial environment.
The report further indicated that as headline inflation eases towards the target, it will boost consumption demand, particularly in rural areas.
Additionally, the strength of the external sector and the foreign exchange reserves will shield domestic economic activities from global economic fluctuations.
