India's Foreign Exchange Resilience Amid Global Currency Fluctuations

India holds the fourth largest foreign exchange reserves at USD 658.8 billion, sufficient to cover 11 months of imports. Despite global currency depreciation, India's financial position remains strong, with a reduced current account deficit and a robust response from foreign investors.

India has solidified its position as having the fourth largest foreign exchange reserves globally, standing at USD 658.8 billion, according to Finance Minister Nirmala Sitharaman. This substantial reserve is capable of covering the country's import needs for 11 months. The minister addressed the Rajya Sabha, providing reassurances regarding the reserves and addressing concerns about the current account deficit.

While some foreign portfolio investors have recently withdrawn funds, new investments indicate renewed confidence in the Indian markets, highlighted by a March 2025 influx of USD 3.84 billion. The minister of state for finance, Pankaj Chaudhary, noted the strength of the Indian economy, even as other global currencies faced depreciation, emphasizing the improving current account deficit.

Despite foreign portfolio outflows and a fluctuating international market, the Indian rupee's depreciation was less severe compared to other Asian currencies. With robust efforts to promote exports and continued foreign investor confidence, India's economic fundamentals remain strong amid challenges faced by other major economies.

(With inputs from agencies.)