India to remain fastest-growing economy, RBI's balance sheet increases to ₹76.25L Cr

THE balance sheet of the RBI increased to Rs 76.25 lakh crore, aided by nearly 33 per cent gains in foreign exchange transactions, as of March 2025, leading to a bumper Rs 2.7 lakh crore dividend to the central government, said the central bank's annual report released on Thursday.

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The keenly watched report said the Indian economy is poised to remain the fastest-growing major economy in 2025-26 by leveraging its sound macroeconomic fundamentals, robust financial sector and commitment towards sustainable growth.

The economy exhibited resilience during 2024-25, supported by strong macroeconomic fundamentals and proactive policy measures, amid protracted geopolitical tensions and geoeconomic fragmentation, said the RBI's Annual Report for the Year 2024-25.

"The strength of the financial sector, reflected in improved asset quality and well-capitalised banks, further supported economic activity. Amidst multiple global headwinds, the Indian financial markets demonstrated resilience and orderly movements," it said.

It also flagged global financial market volatility, geopolitical tensions, trade fragmentation, supply chain disruptions and climate-induced uncertainties as factors posing downside risks to the growth outlook and also upside risks to the inflation outlook.

However, factors like easing of supply-chain pressures, softening global commodity prices and higher agricultural production on above-normal south west monsoon augur well for inflation outlook, the Reserve Bank said.

Shifts in tariff policies may result in sporadic episodes of volatility in financial markets, it said, adding that exports may encounter headwinds on "inward-looking policies and tariff-wars".