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India’s foreign exchange reserves have reached a total of $676.3 billion as of 4 April 2025, providing the country with an import cover of around 11 months.

 

The announcement was made by Reserve Bank of India (RBI) Governor Sanjay Malhotra during a press briefing held after the latest Monetary Policy Committee (MPC) meeting.

 

Governor Malhotra highlighted that the country’s external sector remains strong and resilient, despite continued uncertainty in global trade and financial markets. He stated that key economic indicators are showing stability, supported by the steady rise in the foreign exchange reserves.

 

The current level of reserves reflects a net improvement in recent months and is considered sufficient to shield the country from external shocks. These reserves are essential in maintaining confidence in the Indian economy, particularly during periods of international volatility.

 

They help ensure smooth trade operations and strengthen the financial system's ability to manage currency fluctuations or unexpected economic pressures.

 

An import cover of 11 months indicates that India can continue to pay for imports for almost a year even without fresh inflows.

 

This level of reserve is seen as a strong buffer, especially at a time when many economies are dealing with the impacts of high interest rates, inflationary pressures, and geopolitical tensions.

 

The RBI’s latest figures point to solid economic fundamentals, and the foreign exchange position is viewed as a key marker of India’s overall financial stability. It also reassures investors and global institutions about the country’s ability to navigate international uncertainties.

 

India’s forex reserves include foreign currency assets, gold, special drawing rights (SDRs), and the country's reserve position in the International Monetary Fund (IMF). A steady buildup in these components has helped India maintain a favourable position among emerging economies.

 

As the global economic environment remains challenging, India’s strong foreign exchange reserves offer a cushion and serve as a sign of confidence in the country’s macroeconomic management.