Reserve Bank of India (RBI) RBI has projected the Indian economy to grow at a rate of seven percent in the current financial year. This will be the fastest pace of growth among the world’s major economies. The central bank has expressed hope of a reduction in overall inflation in its 2023-24 annual report. However, there are indications of an increase in food inflation. That is, food items may become more expensive. The size of the Reserve Bank of India’s book has increased by 11.08 percent to Rs 70.47 lakh crore by March 2024. This is about 2.5 times the total GDP of Pakistan (about US $ 340 billion). From this you can yourself guess where Pakistan stands in front of RBI. India is far ahead.
These factors are strengthening the economy
According to the report, the Indian economy is well positioned to accelerate the pace of growth in the next decade in a scenario of macroeconomic and financial stability. It said, “With the overall (headline) inflation moving towards the targeted level, consumption demand will accelerate, especially in rural areas. The strength of the external sector and foreign exchange reserves will protect domestic economic activity from global impacts. ” However, the report also said that geopolitical tensions, geoeconomic fragmentation, global financial market volatility, fluctuations in international commodity prices and uncertain seasonal events pose a risk of slowing growth and rising inflation.
Indian economy is growing rapidly
The report said that the Indian economy expanded at a strong pace in 2023-24 (April 2023 to March 2024 fiscal year), increasing the real GDP growth rate to 7.6 percent. It was seven percent in 2022-23. It remained at seven percent or more for the third consecutive year. In the financial year 2023-24, the economy showed resilience despite persistent challenges. GDP growth has been supported by healthy balance sheets of banks and corporates, the government’s focus on capital expenditure and prudent monetary, regulatory and fiscal policies. However, the Indian economy is facing an unfavorable global macroeconomic and financial environment. The Minimum Support Price (MSP) in both Kharif and Rabi seasons of FY 2023-24 ensured a minimum of 50 percent profit on the cost of production for all crops.
GDP growth will be 7 percent
RBI said, “Real (gross domestic product) GDP growth for 2024-25 is estimated at seven percent, with risks being equal on both sides.” RBI said that the size of its book was Rs 63.45 lakh crore in 2022-23. It has increased to Rs 7,02,946.97 crore in the financial year 2023-24. The book grew to 24.1 percent of India’s GDP by the end of March 2024 from 23.5 percent a year ago. The central bank’s income grew by 17.04 percent in FY 2024, while expenditure decreased by 56.3 percent. With the jump in interest income from foreign securities, the RBI’s surplus increased by 141.23 percent to Rs 2.11 lakh crore, which it transferred to the central government last week.
Income from foreign exchange transactions increased
Apart from this, RBI provided Rs 42,820 crore for the Contingency Fund (CF) in FY 2023-24. RBI made a profit of Rs 83,616 crore from foreign exchange transactions. Interest income from foreign securities increased to Rs 65,328 crore, which helped it increase the size of its contingency fund. The annual report is a statutory report of the Central Board of Directors of RBI. The report covers the functioning and operations of the Reserve Bank of India for the period April 2023 to March 2024.
Unclaimed money increased by 26 percent
On the financial sector, the RBI said that unclaimed deposits with banks grew 26 per cent year-on-year to Rs 78,213 crore at the end of March 2024. The amount in the Depositor Education and Awareness Fund was Rs 62,225 crore. All banks, including cooperative banks, transfer unclaimed deposits of account holders lying in their accounts for 10 or more years to the Depositor Education and Awareness (DEA) Fund of the Reserve Bank of India.
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