2.87 trillion rupees ($30 billion) will be transferred by the Reserve Bank of India to the government after board approval on Friday, setting a new record but falling short of economists’ expectations.
Most economists surveyed by Bloomberg had forecast nearly 3 trillion rupees, so the smaller payout offers less fiscal support than hoped.
Last year’s dividend was 2.69 trillion rupees, meaning the transfer still rises from the previous record even as it disappoints relative to estimates.
Soaring energy prices linked to the Iran war are already straining India’s public finances, leaving the lower-than-expected dividend to cloud the government’s deficit goal.
Is India's record RBI dividend a vital lifeline or a dangerous addiction for its government's finances?
With a record $30 billion dividend falling short of hopes, can it truly shield India from war and inflation?