India's Forex Reserves: A Robust Shield Against Global Shocks Amidst Fluctuations

India's foreign exchange reserves can cover over 11 months of imports and 96% of external debt by June 2024, despite recent declines. The reserves now stand at $652.9 billion. The RBI continues to monitor and manage these reserves to stabilize the Rupee without fixed targets.

India's foreign exchange reserves, capable of covering more than 11 months of imports and nearly all external debt by mid-2024, have shown resilience even as they dipped to a multi-month low. The Reserve Bank of India reported reserves at $652.9 billion despite declines over recent weeks.

The central bank emphasizes that reserve levels remain robust and sufficient, despite a $1.988 billion fall in the week ending December 13, 2024, reflecting strategic intervention efforts to prevent a sharp Rupee depreciation.

India added $58 billion to its foreign exchange reserves in 2023, sharply contrasting last year's $71 billion decline. While closely monitoring exchange markets, the RBI maintains a flexible stance without fixed targets, sustaining investor confidence in Indian assets.

(With inputs from agencies.)