The Reserve Bank of India (RBI) recently released its Annual Report for the financial year 2024-25, which provides an in-depth look at various economic parameters, monetary policies, and the overall health of the Indian economy. key highlights from the report are given below :
- Economic Growth and Resilience: India’s GDP growth for the fiscal year 2024-25 moderated to 6.5%, retaining its status as the fastest-growing major economy despite global uncertainties. The agricultural sector performed robustly, reflecting effective policy measures and favorable monsoon conditions, with agricultural Gross Value Added (GVA) growing by 4.6%. However, industrial growth slowed to 4.3% while the services sector maintained a strong performance with a 7.5% growth .
- RBI’s Financials: The RBI’s total assets grew by 8.2% to ₹76.25 lakh crore, influenced by significant gains in foreign currency assets and domestic investments. The central bank’s surplus transferred to the government reached a record ₹2.68 lakh crore, marking a 27.37% increase from the previous year. This growth was largely driven by increased earnings from foreign investments and effective management of interest rates .
- Inflation Trends: Headline inflation decreased to 4.6%, down from 5.4% in the previous fiscal year. This moderation is attributed to easing supply-chain pressures and improved agricultural production. However, persistent food inflation and global commodity price fluctuations remain concerns .
- Monetary Policy Adjustments: During the fiscal year, the Monetary Policy Committee (MPC) maintained a repo rate of 6.50% for most of the year but shifted its stance to neutral in October 2024, indicating a more flexible approach to monetary policy. The Cash Reserve Ratio (CRR) was reduced to 4% in December 2024 to address liquidity pressures .
- Challenges and Risks: The report also highlights several challenges faced by the economy, including:
- A rise in counterfeit currency notes, particularly ₹200 and ₹500 denominations.
- A significant surge in bank fraud amounts, which tripled to ₹36,014 crore.
- Ongoing geopolitical tensions and trade protectionism affecting global economic stability .
- Future Outlook: For 2025-26, the RBI projects India’s GDP to maintain a growth rate of 6.5%, with inflation expectations set at around 4.0%. The report outlines the importance of balancing fiscal consolidation with necessary capital expenditures to foster long-term growth .
The RBI Annual Report serves as a crucial document reflecting the state of the economy, central bank operations, and the challenges that need to be addressed for sustainable growth in the coming years. You can explore the complete report and additional insights on the RBI’s official website .for economy & bussiness news click www.eminentnews.com
