At 6.5%, India set to remain fastest-growing major economy in FY26: RBI annual report

India is likely to remain the fastest-growing major economy in 2025–26, with a projected growth rate of 6.5 per cent, driven by strong economic fundamentals, a robust financial sector, and a focus on sustainable growth, the Reserve Bank of India (RBI) said in its 2024–25 annual report.

However, the report warned that global trade tensions, prolonged geopolitical uncertainties, and volatility in financial markets could dampen growth prospects and increase inflationary pressures.

“The Indian economy is poised to sustain its position as the fastest-growing major economy during 2025–26, supported by a pickup in private consumption, healthy balance sheets of banks and corporates, easing financial conditions, and the government’s continued thrust on capital expenditure,” the report stated, as quoted by The Indian Express.

The Reserve Bank of India’s balance sheet grew by 8.2 per cent in 2024–25, reaching ₹76.25 lakh crore as of 31 March 2025. This expansion enabled the RBI to deliver a record dividend of ₹2.69 lakh crore to the central government.

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According to the annual report, the increase on the asset side was driven by a 52.09 per cent rise in gold holdings, a 14.32 per cent increase in domestic investments, and a 1.70 per cent rise in foreign investments.

The RBI’s income rose by 22.77 per cent during the year, while expenditure grew by 7.76 per cent. The overall surplus stood at ₹2.68 lakh crore, up 27.37 per cent from ₹2.10 lakh crore in the previous year.

The central bank noted that its balance sheet reflects its key responsibilities, including currency issuance, reserve management, and the implementation of monetary policy.

On the liabilities side, growth was attributed to an increase in currency notes issued (6.03 per cent), revaluation accounts (17.32 per cent), and other liabilities (23.31 per cent).

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As of 31 March 2025, domestic assets comprised 25.73 per cent of total assets, while foreign currency assets, gold (including gold deposits and holdings in India), and loans and advances to financial institutions abroad accounted for 74.27 per cent. A year earlier, these stood at 23.31 per cent and 76.69 per cent, respectively.

The RBI also transferred ₹44,861.70 crore to its Contingency Fund.