Reserve Bank of India Governor Sanjay Malhotra said India's foreign exchange reserves remain strong at USD 682.3 billion, providing an import cover of approximately 11 months.
Speaking during the RBI's second bi-monthly monetary policy announcement for FY27, the Governor noted that the country's external sector remains resilient despite global uncertainties and geopolitical challenges.
He highlighted several policy measures that are expected to strengthen India's balance of payments position, including:
Recent trade agreements with key global partners.
Increased foreign investment opportunities, including 100% FDI in the insurance sector.
The government's ethanol blending programme.
Continued focus on energy transition initiatives.
Easing of FDI restrictions for land-bordering countries.
Liberalisation of the External Commercial Borrowing (ECB) framework.
Other reforms aimed at boosting capital inflows and external sector stability.