In its annual report, the Reserve Bank of India stated that as of March 31, 2024, the size of its balance sheet had increased by 11.08 percent to ₹70.48 lakh crore.

At US$844.76, the size of the central bank's balance sheet is almost 2.5 times that of Pakistan's total GDP, which the International Monetary Fund (IMF) estimates to be approximately $338.24 billion.

RBI's balance sheet
Image Source: HBS Online - Harvard Business School

RBI's Balance Sheet Ends FY23 at ₹63.44 Lakh Crore, Projections for FY25 Growth

At ₹63.44 lakh crore, the RBI's balance sheet ended FY23. By the end of March 2024, it will have risen to 24.1% of the GDP of India. In FY24, the RBI reported a 17.04 percent increase in revenue and a 56.30 percent drop in expenditure.

With regard to the Indian economy, the RBI stated that although food inflation is still susceptible to frequent supply shocks, this is "preventing a quicker alignment of headline inflation with the target," and that overall, the prognosis is still favourable due to the persistent strengthening of macroeconomic fundamentals.

RBI's balance sheet
Image Source:The Statesman

RBI said, “The government’s continued thrust on capex while pursuing fiscal consolidation, and consumer and business optimism augur well for investment and consumption demand.”

In light of macroeconomic and financial stability, the RBI projected a real GDP growth of about 7% for FY25 and stated that the Indian economy is well-positioned to maintain its development trajectory for the ensuing ten years.

"As headline inflation eases towards the target, it will spur consumption demand especially in rural areas," the central bank stated.

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