Mumbai (Maharashtra): Indian economy is likely to grow at 7 per cent in the current fiscal year starting April, the Reserve Bank of India (RBI) said in its annual report released on Thursday.
The Indian economy, it said, expanded at a robust pace in 2023-24 (April 2023 to March 2024 financial year), with real GDP growth accelerating to 7.6 per cent from 7.0 per cent in the previous year the third successive year of 7 per cent or above growth.
"The real GDP growth for 2024-25 is projected at 7.0 per cent with risks evenly balanced," it said. The economy, it said, showed resilience in FY24 despite persistent headwinds.
MSPs for kharif and rabi crops ensured minimum return of 50 pc over cost of production in 2023-24
The minimum support prices (MSPs) for both kharif and rabi seasons 2023-24 ensured a minimum return of 50 per cent over the cost of production for all crops, said the Reserve Bank's Annual Report.
The overall public stock of foodgrains as on March 31, 2024 stood at 2.9 times the total quarterly buffer norm, the report said. On November 29, 2023, the government extended the scheme of free distribution of foodgrains under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) for five more years, effective from January 1, 2024.
The report, which is a statutory report of RBI's central board of directors, noted that the agriculture and allied activities faced headwinds from the uneven and deficient south-west monsoon (SWM) rainfall coinciding with strengthening El Nino conditions. The overall SWM rainfall in 2023 (June-September) was 6 per cent below long period average (LPA) at the all-India level.
As per the second advance estimates, the production of kharif and rabi foodgrains in 2023-24 was 1.3 per cent lower than the final estimates of the previous year. The output of millets could benefit from productivity gains, the report said.
MSPs in 2023-24 were increased in the range of 5.3-10.4 per cent for the kharif crops and 2.0-7.1 per cent for the rabi crops. Moong witnessed the maximum MSP increase among kharif crops, while the increase was the highest for lentils (masur) and wheat among rabi crops.
RBI's balance sheet rises 11 pc to Rs 70.47 lakh cr in FY24
The size of Reserve Bank's balance sheet increased by 11.08 per cent to Rs 70.47 lakh crore as on March 2024, leading to the highest-ever dividend payout to the government, according to the central bank's annual report. In actual terms, the increase was Rs 7,02,946.97 crore over Rs 63.45 lakh crore as on March 2023.
The central bank's net income stood at Rs 2.11 lakh crore at end-March 2024 after making a provision of Rs 42,819.91 crore, significantly down from Rs 1,30,875.75 crore in the preceding fiscal. The amount made towards provisioning is transferred to Contingency Fund (CF).
The net income during 2022-23 was Rs 87,420 crore.
Like 2022-23, no provision was made towards Asset Development Fund (ADF) during the year under review. The balance sheet of the Reserve Bank reflects activities carried out in pursuance of its various functions including issuance of currency as well as monetary policy and reserve management objectives.
Last week, the RBI had approved the highest-ever dividend payout of Rs 2.11 lakh crore to the central government for 2023-24. The dividend or surplus transfer by the RBI to the Centre was Rs 87,416 crore for the fiscal 2022-23. The previous high was Rs 1.76 lakh crore in 2018-19.
According to the RBI's Annual Report for 2023-24, the increase on assets side in the balance sheet was due to rise in foreign investments, gold, and loans and advances by 13.90 per cent, 18.26 per cent and 30.05 per cent, respectively.
On liabilities side, expansion was due to increase in notes issued, deposits and other liabilities by 3.88 per cent, 27.00 per cent and 92.57 per cent, respectively. The RBI further said domestic assets constituted 23.31 per cent while foreign currency assets, gold (including gold deposit and gold held in India) and loans and advances to financial institutions outside India constituted 76.69 per cent of total assets as on March 31, 2024, as against 26.08 per cent and 73.92 per cent, respectively, as on March 31, 2023.
The Reserve Bank holds 822.10 metric tonnes of gold, of which 308.03 metric tonnes are held as backing for notes issued as on March 31, 2024. The value of gold held as asset of Issue Department increased by 16.94 per cent from Rs 1,40,765.60 crore as on March 31, 2023 to Rs 1,64,604.91 crore as on March 31, 2024.
RBI said this increase in the value of gold during the year is on account of addition of 6.94 metric tonnes of gold, increase in price of gold and depreciation of Indian rupee against US dollar.
