Addressing a post-policy press conference in Mumbai, Reserve Bank of India Governor Shaktikanta Das stated that the country’s external sector continues to demonstrate resilience. He highlighted improvements in the current account deficit, the external debt-to-GDP ratio, and the net international investment position, expressing confidence that India is well positioned to comfortably meet its external financing requirements.
The RBI Governor further noted that the current account deficit for FY25 is expected to remain within sustainable limits, supported by robust remittances, strong services exports, and a narrowing trade deficit. On foreign direct investment, he stated that India has retained its position as the most attractive destination for greenfield foreign direct investment in the Asia-Pacific region over the past year.
Meanwhile, according to a Reserve Bank of India press release, foreign currency assets, which constitute a major component of the overall reserves, rose by 5.065 billion dollars to 572.56 billion dollars during the reporting week. In contrast, gold reserves declined by 212 million dollars to 5.50 billion dollars. Special Drawing Rights with the International Monetary Fund also fell marginally by 17 million dollars to 18.11 billion dollars.
The overall movement in reserves reflects a mixed trend in individual components but reinforces India’s strengthening external position, supported by steady inflows and macroeconomic stability indicators.
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