The Reserve Bank of India has announced its largest-ever dividend transfer to the central government, a record ₹2.87 lakh crore — providing significant fiscal headroom as India navigates global economic uncertainty.
The transfer, which forms part of the government's non-tax revenue, comes at a critical time. With geopolitical tensions in West Asia pushing up oil and fertiliser prices, the Modi government will need every rupee it can secure to manage rising subsidy bills while staying committed to fiscal consolidation.
