RBI’s Balance Sheet Now 2.5 Times the Size of Pakistan’s GDP
In a significant development, the Reserve Bank of India (RBI) has announced that its balance sheet size has risen by 11.08 per cent to ₹70.48 lakh crore as of March 31, 2024. This remarkable growth positions the RBI’s balance sheet at approximately US$844.76 billion, nearly 2.5 times the size of Pakistan’s entire GDP, which the International Monetary Fund (IMF) has estimated at around $338.24 billion.
In a significant development, the Reserve Bank of India (RBI) has announced that its balance sheet size has risen by 11.08 per cent to ₹70.48 lakh crore as of March 31, 2024. This remarkable growth positions the RBI’s balance sheet at approximately US$844.76 billion, nearly 2.5 times the size of Pakistan’s entire GDP, which the International Monetary Fund (IMF) has estimated at around $338.24 billion.
In the fiscal year 2022-2023, the RBI’s balance sheet stood at ₹63.44 lakh crore. The current increase elevates the balance sheet to 24.1 per cent of India’s GDP at the end of March 2024. The RBI’s annual report also highlights a 17.04 per cent rise in income for FY24, accompanied by a significant decrease in expenditure by 56.30 per cent.
Despite challenges such as food inflation, the RBI maintains a positive outlook on the Indian economy. The central bank attributes this optimism to the sustained strengthening of macroeconomic fundamentals. However, it acknowledges that food inflation remains vulnerable to recurring supply shocks, which are “preventing a quicker alignment of headline inflation with the target.”
The RBI commends the government’s continued emphasis on capital expenditure (capex) alongside efforts at fiscal consolidation. This, combined with consumer and business optimism, bodes well for investment and consumption demand. Looking ahead to FY25, the RBI forecasts a real GDP growth of around 7 per cent, asserting that the Indian economy is well-placed to sustain its growth trajectory over the next decade, supported by macroeconomic and financial stability.
Sources By Agencies
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