“We have very robust foreign exchange reserves, $695 billion as per the latest figures that are available with us, sufficient to cover 11 months of merchandise exports,” Malhotra said at the annual FIBAC banking conference in Mumbai. The RBI typically benchmarks reserves against imports, not exports.
Malhotra credited the buildup to the strong and prudent fiscal and monetary policies followed by the government and the various regulators over the last few years, along with structural reforms and improved productivity.
He said the Monetary Policy Committee would keep its focus on price stability while supporting growth. “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.
The governor warned of global headwinds. “We are now at a critical juncture, as we navigate the choppy global economic environment characterised by heightened trade uncertainty and persisting geopolitical tensions,” he said.
His comments come days before the United States raises tariffs on Indian exports to 50% on August 27 in response to India’s continued imports of Russian crude oil. The US accounted for about a fifth of India’s goods exports in FY24.
ALSO READ | ‘It will take decades’: RBI Governor on rupee’s internationalisation prospects
(Edited by : Shoma Bhattacharjee)
