India’s forex reserves can cover 11+ months’ imports

New Delhi

India’s foreign exchange reserves stood at $691.5 billion as of May 30, enough to cover over 11 months of imports and 96% of external debt, said RBI Governor Sanjay Malhotra. However, the reserves dipped by $1.2 billion that week, ending an 8-week growth streak. Just a week earlier, reserves had risen by nearly $7 billion.

The RBI noted that foreign currency assets, the main part of the reserves, were at $586.17 billion. India's total reserves remain close to the all-time high of $704.89 billion recorded in September 2024.

Governor Malhotra added that India’s external sector remains stable, with improved vulnerability indicators. ECBs and non-resident deposits have also seen higher inflows. Gold reserves, now valued at $83.58 billion, have nearly doubled in share since 2021, helping the RBI stabilise the rupee. Meanwhile, exports surged 12.7% in April to $73.8 billion, despite global economic challenges.