RBI annual report bats for dovish monetary policy

The strength of 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

- PRESS TRUST OF INDIA

The balance sheet of the Reserve Bank of India (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 Thursday.

The report confirms that 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.

Keeping in mind the global financial market volatility, geopolitical tensions, trade fragmentation, supply-chain disruptions and climate-induced uncertainties gave a hint of downside risks to the growth. However, factors like easing of supply-chain pressures, softening global commodity prices and higher agricultural production on above-normal southwest monsoon augur well for inflation outlook, the report 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". The trade pacts being signed and negotiated by India will help ensure that the impact is limited