Indian Forex Reserves Near USD 700 Bn; Sufficient To Cover 11 Months Of Merchandise Exports: RBI Guv

Mumbai, Aug 25 (KNN) Reserve Bank of India (RBI) Governor Sanjay Malhotra on Monday said the country’s foreign exchange reserves remain robust at USD 695 billion, adequate to cover 11 months of merchandise exports, providing a key buffer against external shocks. 

He was speaking at the annual banking conference FIBAC 2025 in Mumbai.

“We have very robust foreign exchange reserves, USD 695 billion as per the latest figures that are available with us, sufficient to cover 11 months of merchandise exports,” Malhotra said. 

Notably, the RBI generally benchmarks reserves against imports rather than exports.

Malhotra reiterated the central bank’s commitment to maintaining price stability while supporting growth, noting that the Monetary Policy Committee (MPC) would continue to balance inflation control with economic expansion. 

“Supply-side measures and monetary policy have helped contain CPI inflation. Stringent regulations may impede economic growth, and rules have been relaxed when the context demanded,” he said.

Acknowledging the uncertain global environment, the governor pointed to trade disruptions and geopolitical tensions as risks to India’s growth outlook. 

“We are now at a critical juncture... As we navigate the choppy global economic environment characterised by heightened trade uncertainty and persisting geopolitical tensions, we need to push the frontiers of growth,” he remarked.

The comments came just days before the United States is set to impose additional tariffs on Indian exports, with a 25 percent duty hike effective August 27 under the Trump administration’s trade policy. 

(KNN Bureau)